The Annual Report on the Most Valuable Global Banking Brands

Brand Finance® Banking 500 The annual report on the most valuable global banking brands

February 2010 “Brands are the most valuable intangible assets in business today. They drive demand, motivate staff, secure business partners and reassure financial markets. Leading edge organisations recognise the need to understand brand equity and brand value when making strategic decisions” David Haigh, CEO, Brand Finance

1 © Brand Finance plc 2010

Foreword

This report, first published in 2006, was the Once again, the fortunes of the world’s largest first publicly available study analyzing the banks continued to dominate the headlines. Financial institutions have never been placed financial value of the world’s top 100 banking under such public scrutiny, from questions on brands. For the third year running we have the credibility of risk management programs to extended our analysis to the top 500 global politically-sensitive bonus policies. Following the banking brands. It is published annually and collapse or acquisition of many famous brands, incorporates data from all listed companies those remaining have been able to take advantage globally. Each brand has been accorded a brand of government bailouts, partially thaw the credit rating: a benchmarking study of the strength, freeze and enjoy the benefits of a less competitive risk and future potential of a brand relative to its market. As a result, the banking sector has begun competitor set as well as a brand value: a summary to show tangible signs of recovery. Not only have the top 500 most valuable banking brands grown measure of the financial strength of the brand. by 62% in terms of market capitalisation, but their brand values have cumulatively increased by 49%. The index also tracks the rise of emerging market bank brands.

In 2008 the most significant rises were to be found in Asia, notably China and India. In 2009 a star performing region is the Middle East, particularly in the GCC states. This is a reflection of buoyant oil and gas receipts, powering many Middle Eastern economies, and the benign effect of ethical Islamic banking practices on demand for Middle East bank products and services. Shariah compliant banking is one of the brightest stars in the banking firmament this year. This is testament to the trust and loyalty which can be engendered when ethical beliefs and behaviour are at the heart of the banking relationship. Islamic banking is providing a timely lesson to the rest of the world banking system. However, the South American region experienced the highest growth in brand value increasing by 84%. This is a reflection of the resilient performance in the region, particularly in the Brazilian banking market.

This report serves to provide an opinion on the point-in-time valuations of the most valuable financial services brands, and also illustrates how our methodology, findings and value-based marketing techniques can be used for decision making and to determine the impact of brand equity on business performance.

David Haigh, CEO, Brand Finance plc

Stabilisation in the market? USA and UK’s dominance of banking may be waning... • The total value of the top global 500 bank brands 2010 is US$716 billion, an increase • US dominance of global banking has declined of 49% on 2009. further with a decrease in the number of US banks in the global 500 down to 85 from 95 • The recovery of global bank brands has in 2009. been significant. The value of the top 500 global bank brands 2010 is now 4% higher • The number of European banks in the global than the value in 2008 prior to the crisis. 500 has increased from 174 to 197 banks Market capitalisation has decreased by in 2010 while the number of UK banks has 20% for the same period. decreased from 24 to 22. This suggests that the recovery on the European continent • The total market capitalisation value in particular France, Spain, and Switzerland of the top global 500 bank brands is has left British banks standing. US$5,996 billion, an increase of 62% on 2009. As brands in emerging markets close • Banks’ market capitalisations have seen the gap a significant increase in value in 2010 due to renewed confidence in the markets. • 2009 is the first year that a Russian bank has made the top 20 (Sberbank) which has seen • All segments of the banking industry significant growth. have recovered in 2010. The credit card banking segment has seen significant • The South American region has experienced growth with the top ten credit card the highest growth in brand value increasing companies averaging 49% growth by 84%. This is a reflection of the resilient in brand value. performance in the region, particularly in the Brazilian banking market. • For the third year running, HSBC is the most valuable banking brand in the world, increasing • The Middle East has seen a 78% growth in its brand value by 12% to US$28.5 billion. brand value, based on high demand for Islamic banking products and services.

• European bank brands have recovered significantly compared to the North American and Asian markets (67%, 29% and 31% growth respectively).

• Although Asia has only experienced a 31% growth in brand value it continues to perform well particularly in India and China where bank brands have grown by 137% and 58% respectively.

• Banks in the Pacific, including Australia and New Zealand have seen a recovery with growth of 52%.

Please note: All figures are in US$ millions unless otherwise specified.

Contents

Foreword ...... 001

Executive Summary ...... 003

Introduction ...... 007

Top 20 Most Valuable Banking Brands .. 009

‘New International standard on brand valuation’ by David Haigh, CEO, Brand Finance plc .. 031

‘Positioning for Success’ by Sholto Lindsay-Smith, UffindellWest .. 037

Sector Analysis ...... 039

Regional Analysis ...... 051

Global Intangible Financial Tracker 2010 .. 069

Explanation of Methodology ...... 073

About Brand Finance – A detailed overview ...... 075

Glossary of Terms ...... 081

Disclaimer ...... 082

Contact Details ...... 083

Appendix ...... 085

Top 500 Most Valuable Banking Brands ... 087

6 7

Introduction

2009 continued to be a tumultuous year for banking How has the market instability affected and the wider global economy. Retail banks banking brands? were forced to repair battered balance sheets but began providing wholesale lending to their more When consumers begin to worry about the economy, they return to the brands that they credit-worthy customers. Meanwhile the demise trust. Historically, the majority of banking brands of Lehman Brothers, Bear Stearns and Merrill are built on a foundation of trust and reliability; Lynch, coupled with government bailout money, savers want to ensure that their deposits are safe, meant that the surviving investment banks were and organisations want to borrow money, invest able to post near-record profits through providing in financial products and receive useful advice an invaluable service to beleaguered commercial while paying competitive rates. However, the last organisations, as well as taking advantage of two years have left many banks’ reputations in reduced competition. Overall financial market tatters. From allegations of short-termism and poor sentiment improved and a systemic financial risk management, to accusations of poor credit controls and destructive bonus schemes, few collapse now seems a more unlikely prospect banks have emerged with much credit in the eyes than in the same period last year. of the average consumer. With criticism fanned by political point scoring and an outraged tabloid press, many banks have focused on restoring profitability and attempting to regain customer confidence.

At the time of writing, the bonus season for investment banks is about to commence. Many billions of dollars will be distributed amongst the staff of the top firms. The management of banks including RBS, currently 84% state-owned following the bail-out by the UK government, is now attempting to revitalise their own businesses despite facing severe constraints relating to bonus packages.

From a wholesale perspective, the reaction to bonus season is more pragmatic. Blue-chip companies care less about remuneration policies than a bank’s ability to offer the best service or facilities to their own business. Their focus is on securing the best advice or best price for the service or product in question. As a result, the remaining investment banks continue to prosper, despite protests from hostile consumer media. A brand equity driver analysis for an investment bank normally reveals an extremely low importance weighting for consumer audiences, as their impact on the cash flows and general commercial operations of the business are very limited.

Brand Ranking: 2010 – 1st 2009 – 1st Brand Value: 2010 – US$28,472m 2009 – US$25,364m Brand Rating: 2010 – AAA+ 2009 – AAA+ Domicile: United Kingdom

HSBC, the world’s local bank, has retained its crown as the most valuable banking brand in the world for the third year in a row, increasing in brand value by US$3.1 billion (12%).

HSBC had a resilient year in 2009. Its performance was boosted by its successful completion of the Rights Issue in April 2009 which raised US$17.8 billion and was strongly supported by its shareholders. In addition, HSBC’s Global Banking and Markets business delivered a strong performance enabling the company to continue its global strategy of combining leadership in emerging markets with an internationally established global network. HSBC’s strong international brand image is consistently in line with its business strategy, and its move towards a global marketing policy continues to unify how the brand presents itself across markets.

Although the company is domiciled in the UK it has a strong Asian heritage. This is likely to continue as part of the bank’s strategy to reinforce its business in China and other emerging markets. This drive for Asian growth led Michael Geoghegan, Chief Executive of HSBC, and 12 other senior executives to move from London to Hong Kong, and to consider selling offices in London, New York and Paris.

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Brand Ranking: 2010 – 2nd 2009 – 2nd Brand Value: 2010 – US$26,047m 2009 – US$21,017m Brand Rating: 2010 – AAA+ 2009 – AAA Domicile: United States

Bank of America (BoA) remains the second most valuable banking brand in the world increasing in value by 24% to US$26,047 million.

2008 was the nadir for US banks and 2009 was a year of gradual recovery. Ken Lewis, former CEO of BoA retired at the end of 2009 after one of the toughest year’s BoA had faced. He has recently been replaced by Brian Moynihan who now has the task of rebuilding BoA further in its core US markets.

Although BoA’s rebound in 2009 was less dramatic than Goldman Sachs, Chase and JP Morgan (which grew 106%, 53% and 45% respectively) it performed strongly. As a result BoA’s brand rating increased from AAA to AAA+ during 2009. BoA had to sell assets, such as a third of its 16 percent stake in China Construction Bank, to strengthen its balance sheet in 2009. But having done so, it is in a better position to capitalise on the acquisition of Merrill Lynch, which is beginning to recover from its low point. At the beginning of December 2009, BoA announced that it would repay the US$45 billion in federal aid that it received at the height of the financial meltdown.

Brand Ranking: 2010 – 3rd 2009 – 4th Brand Value: 2010 – US$25,576m 2009 – US$10,840m Brand Rating: 2010 – AAA+ 2009 – AA Domicile: Spain

Santander has emerged as the fastest growing retail bank brand in the world, taking this year’s third place. Despite the difficult banking climate, Spain’s leading bank has grown its brand value by US$14.8 billion, a phenomenal increase of 136% on last year’s result.

A significant contributor to the growth in brand value lies in the consolidation of acquired brands under the Santander name. Abbey, one of the UK’s leading mortgage and savings banks, which Santander acquired in 2004, has finally been rebranded. Alliance & Leicester and Bradford & Bingley have also been rebranded as Santander. These rebrandings will help Santander integrate its three businesses in the UK under the masterbrand and further strengthen its global position.

In Brazil, Santander recently raised US$8.1billion in a record Brazilian IPO to help fund the rapid expansion of its local Banco Real network and branches in this rapidly growing economy.

Organically Santander has performed consistently well throughout the year by maintaining conservative business policies.

Overall Santander has increased its brand rating to AAA+ from AA.

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Brand Ranking: 2010 – 4th 2009 – 3rd Brand Value: 2010 – US$21,916m 2009 – US$14,508m Brand Rating: 2010 – AA 2009 – AA Domicile: United States

The brand value of Wells Fargo, the USA’s biggest consumer bank, has increased by 51% since last year. This is a strong performance achieved during a challenging year. It dropped to fourth place in this year’s table due to the rapid growth of the Santander brand.

The primary challenge for Wells Fargo has been the on-going integration of Wachovia, which was acquired as a result of the 2008 crisis. Wachovia has not been rebranded to Wells Fargo but its livery states that it is “A Wells Fargo Company”. With the Wachovia deal, Wells Fargo absorbed more than US$219 billion worth of commercial real estate and corporate loans, and a large book of at-risk mortgages. In January 2009 the bank had to set aside more than US$21.7 billion to cover losses amid the continuing housing slump and economic recession.

Despite this, the brand has performed well in 2009, a testament to its underlying strength across the US. Although the jury is still out on whether the acquisition of Wachovia was wealth creating, Wells Fargo’s heritage and deep relationship with consumers is seeing a strong rebound in its fortunes.

Brand Ranking: 2010 – 5th 2009 – 7th Brand Value: 2010 – US$14,362m 2009 – US$9,810m Brand Rating: 2010 – A+ 2009 – A Domicile: United States

After a devastating year in 2008, Citi has had a much better year in 2009, reducing its debt and significantly increasing its brand value by 46% to US$14,362 million.

Citi has been bailed out on two consecutive occasions in the crisis, receiving a total of US$45 billion from the US government, creating pressure to make drastic structural changes including a breakup plan. To maximise the value of its core franchise, in early 2009 Citi announced that it would reorganise itself into two operating units, Citicorp and Citi Holdings. This move is expected to allow Citigroup to focus on driving the performance of its core businesses as well as realizing value from non-core assets. Having lowered risk, written off problem assets, tightened cost controls and improved operation efficiency, Citigroup reported its first net profit since 2007 in April 2009.

In June 2009 the closure of Morgan Stanley Smith Barney joint venture was announced. This combined Citi’s Smith Barney business in the U.S. and Australia, Citi’s Quilter in the U.K. with Morgan Stanley’s global wealth management group. This transaction resulted in an $11 billion gain for Citigroup.

In December, Citigroup became one of the last big US banks to exit the government’s bailout program when it agreed to repay the $20 billion remaining on its outstanding loan.

In order to boost Citigroup’s common equity, the United States Government converted its preferred-stock into common stock, giving the US government a 34% stake in the company. It is predicted that the US taxpayers could ultimately see a US$13-14 billion profit.

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Brand Ranking: 2010 – 6th 2009 – 8th Brand Value: 2010 – US$14,060m 2009 – US$9,360m Brand Rating: 2010 – AA 2009 – AA- Domicile: France

BNP is France’s most valuable bank brand and the sixth most valuable bank brand in the world, increasing its brand value by 50% to US$14,060 million in this year’s study.

BNP Paribas has performed admirably with net profits of approximately €3.2 billion for the year to September 2009. Its growth can be credited to good operating performance of all divisions despite a high cost of capital. Its retail and investment banking divisions succeeded in attracting new business amid the global economic downturn. BNP Paribas American subsidiary BancWest, has also managed to stabilise its revenues as a result of continued efforts to adapt to the economic crisis in the United States.

BNP Paribas has focused on maximising the value of its masterbrand by rebranding various acquired businesses throughout 2009. In April, BNP Paribas purchased a 75 percent stake in the Belgian company Fortis Bank enabling it to become the largest bank in the euro zone by deposits. BNP Paribas rebranded Fortis Bank to ‘BNP Paribas Fortis’ and has rolled out campaigns in its key territories since May 2009.

In addition, BNP Paribas became the majority shareholder of BGL and as of 21 September 2009 it has rebranded to ‘BGL BNP Paribas’ and launched a campaign featuring posters and a special welcome drive at branch offices. It has also rebranded its Atisreal real estate services division to ‘BNP Paribas Real Estate’ in order for it to operate under a single identity and to leverage the equity of the BNP Paribas brand.

Brand Ranking: 2010 – 7th 2009 – 17th Brand Value: 2010 – US$13,887m 2009 – US$6,753m Brand Rating: 2010 – AAA+ 2009 – AAA- Domicile: United States

After dropping almost 50% in brand value in 2009, Goldman Sachs has seen its brand value double in this year’s rankings, allowing it to leap ten places to become the world’s seventh most valuable bank brand with a brand value of US$13,887 million and a brand rating of AAA+.

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has allowed Goldman Sachs to post record profits. However, although fixed income earnings were seeing massive growth, Goldman Sach’s other divisions such as equity trading, investment banking, asset management and securities services have continued to experience considerable reductions.

As a result of its record performance in Trading and Principal Investments divisions, Goldman Sachs was able to pay back US$10 billion of taxpayer bailout funds. However, amidst the crackdown on bankers’ bonuses, Goldman Sachs has recently faced a considerable amount of criticism for setting aside billions for year-end payouts to its employees so soon after the crisis and government bailouts.

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Brand Ranking: 2010 – 8th 2009 – 10th Brand Value: 2010 – US$13,400m 2009 – US$8,747m Brand Rating: 2010 – AA 2009 – A+ Domicile: United States

JPMorgan Chase was formed in 2000 and consists of the investment bank J.P. Morgan and its retail arm, Chase. The Company’s U.S. consumer and commercial banking businesses serve customers under the Chase brand. Chase improved its performance during 2009 and has seen its brand value rise by 53% to US$13.4 billion.

Net income for the retail banking division amounted to US$2.9 billion for the year to October (a 48% year-to-date increase). This increase reflected the impact of the Washington Mutual (WaMu) transaction, higher deposit balances, higher deposit-related fees and wider deposit spreads. The acquisition of WaMu in late 2008 has given Chase its first significant presence on the West Coast and resulted in the bank becoming the nation’s second-largest branch network with locations reaching 42% of the US population. The acquisition also more than doubled the number of checking accounts with the bank to approximately 25 million.

Total net revenue for retail financial services during this period has amounted to US$25 billion. Although not as profitable, this is about US$1.7 billion higher than the investment banking division and is one of the contributors to Chase’s outperforming its sister bank in terms of brand value. This also reflects the general improvement in the retail banking sector over the past year.

Brand Ranking: 2010 – 9th 2009 – 12th Brand Value: 2010 – US$13,299m 2009 – US$7,698m Brand Rating: 2010 – AAA- 2009 – AA Domicile: Brazil

Banco Bradesco is once again Brazil’s most valuable banking brand with an increased brand value of 73% to US$13.3billion. As a result of its improved brand performance, Bradesco has managed to make it into this year’s top ten rankings as the ninth most valuable bank brands in the world.

Brazil’s once troubled economy has recovered from the global economic crisis quicker than most thanks to its domestically-driven retail and real estate industries. In addition, the up-and-coming middle class are helping fuel growth in the financial service sector. Banco Bradesco has benefited from rapid GDP growth, which is estimated to be 3.5% in 2010, outperforming many other countries.

Banco Bradesco has had a relatively strong financial performance in 2009 which has been impacted by its innovative brand and marketing program, called “Presença” which has brought confidence and trust in uncertain times. The bank has entered into partnerships with Skandinaviska Enskilda Banken to provide cash management solutions and Banco Espirito Santo to create 2bCapital a new private equity fund manager in Brazil and is continually implementing innovative products and services. The bank, is now second largest in Brazil after the merged Itau Unibanco, and has future plans to expand with acquisitions and partnerships to provide a greater range of services to its customers.

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Brand Ranking: 2010 – 10th 2009 – 14th Brand Value: 2010 – US$13,134m 2009 – US$7,583m Brand Rating: 2010 – AA 2009 – A- Domicile: United Kingdom

Barclays brand value, although growing by over 70% in absolute terms, has almost halved as a percentage of market cap on last year. This is largely because the share price rebounded so dramatically in 2009.

Despite large write downs early in the year, Barclays managed to avoid UK government funding through its controversial raising of capital in November 2008 from Middle East Investors along with the sale of its iShares division, the world’s top provider of exchange traded funds to CVC Capital Partners in April. Furthermore, in June, Barclays sold its asset management arm BGI to Blackrock, helping the bank raise capital in the short term to insulate it from financial uncertainties in a difficult economic climate.

For the first nine months of 2009, Barclays’ profits dropped by almost a fifth year-on-year but the investment banking and capital markets divisions remained robust and profitable.

To help improve the banks performance, Barclays recently completed the acquisition of Standard Life Bank, a mortgage and savings business which will help boost deposit balances flowing from the Standard Life maturing policy book. In addition, the bank has renewed its sponsorship of the English Premier League, the most popular football league in the world. The sponsorship lasts for the next three years, which is a great opportunity to continue to strengthen the brand’s international footprint.

Brand Ranking: 2010 – 11th 2009 – 6th Brand Value: 2010 – US$12,737m 2009 – US$9,944m Brand Rating: 2010 – AA 2009 – AA Domicile: United States

American Express is once again the most valuable credit card brand but has slipped down the overall rankings by five places to eleventh position in this year’s table.

This is because the credit card market has suffered during the recession as consumers have cut back on spending and card issuers have tightened their lending policies. As a result it is not a surprise that American Express has had a relatively tough year with a decrease in income from continuing operations of over 58% in the first quarter. By the third quarter of 2009 this had only improved to a 25% decrease year- on-year. Notwithstanding this performance, American Express managed to pay back the US$3.4 billion in Troubled Asset Relief Programme (TARP) Funds it received from the U.S government in June.

American Express has refocused its efforts on the charge card market as it is less risky and has the potential to attract higher margins. In September, it launched a new integrated marketing campaign under their theme of ‘Don’t take chances, Take Charge’, in which Amex reassured customers of the protection and safety offered by American Express Charge Card.

In a difficult market American Express has strengthened its brand position by focusing on customer needs which is evident in its latest ‘Take Charge’ campaign Amex’s connection with customers is evidenced by the fact that for the third year running it is the leader in customer satisfaction amongst credit card companies in the J.D. Power and Associate 2009 Credit Card Satisfaction Study.

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Brand Ranking: 2010 – 12th 2009 – 5th Brand Value: 2010 – US$12,083m 2009 – US$10,031m Brand Rating: 2010 – AA+ 2009 – A+ Domicile: China

Industrial and Commercial Bank of China (ICBC) is China’s largest bank and also the world’s largest bank by market capitalisation, deposits and profitablity. In addition, it is the world’s twelfth most valuable banking brand in the world with a brand value of US$12.1billion (12% increase year-on-year).

ICBC has had a solid financial performance in 2009 which has been influenced by a pickup in China’s economic growth which continues to drive demand for loans. ICBC saw its profits after tax increase to over RMB 100 billion in the first 9 months of 2009, an increase of 7.5% on the same period in 2008. Net assets also increased by 12% over the same period.

ICBC is one of China’s ‘Big Four’ state-owned commercial banks, with limited global exposure and low brand equity on a global stage. As a result ICBC’s brand value to market capitalisation percentage remains low at around 5%. However, ICBC continues to seek expansion opportunities in the Southeast Asia market and has recently agreed to buy Bangkok Bank’s stake in ACL Bank.

Brand Ranking: 2010 – 13th 2009 – 9th Brand Value: 2010 – US$12,076m 2009 – US$9,024m Brand Rating: 2010 – AA+ 2009 – AA Domicile: China

China Construction Bank (CCB) is this year’s second most valuable commercial banking brand and the second most valuable Asian banking brand with an increased brand value of 33% to US$12.1 billion. However, CCB’s ranking has fallen four places to thirteenth. This reflects the improving economic environment, which has been particularly favourable to recovering banks in the developed world. As retail services account for only 28% of CCB’s business its performance was surpassed by others in the overall rankings.

Despite the economic slowdown, CCB has had a steady year, posting net profits of RMB 86 billion for the year to October 2009. This represents a 2% increase over the same period last year.

CCB has been actively working to expand its brand’s global presence. In June 2009, it opened a branch in New York and a wholly-owned subsidiary in London. The bank is also set to open a branch in Sydney in the summer of 2010. This is in addition to branches in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo, and Seoul.

The bank’s brand value/market capitalisation percentage is very low, which is the norm for Chinese state-owned banks. This is indicative of the fact that CCB has not had to leverage its brand significantly against competition outside China.

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Brand Ranking: 2010 – 14th 2009 – 11th Brand Value: 2010 – US$11,732m 2009 – US$8,072m Brand Rating: 2010 – AA- 2009 – AA- Domicile: United States

Despite adverse market conditions, JP Morgan has performed well throughout 2009, especially in terms of its investment banking division where it reported net income of US$5 billion for the first nine months of 2009 amounting to a 320% year on year increase. This strong performance in investment banking has helped JP Morgan cancel out its significant losses on credit card and consumer loans businesses.

In addition, JP Morgan was able to pay back its US$25 billion TARP loan to the US Government in June. However, it has recently received criticism for paying out huge bonuses to its employees and taking its total remuneration pot for the first nine months of the year to US$21 billion.

In December 2009, J.P. Morgan acquired the rest of its joint venture with the British brokerage company Cazenove Group, which will give it a stronger foothold in the UK underwriting market. It plans on rebranding the entire equities business across EMEA to the JP Morgan Cazenove brand.

The bank’s brand value has risen by 45%, to US$11,732 million but its position among the top banking brands has fallen three places to 14th as it has lost out to stronger emerging market banks.

Brand Ranking: 2010 – 15th 2009 – 26th Brand Value: 2010 – US$11,729m 2009 – US$4,531m Brand Rating: 2010 – AA+ 2009 – AA- Domicile: Russia

Sberbank is not only the most valuable Russian banking brand but the largest credit institution in Russia and the CIS. It has had a successful year increasing its market capitilisation by 160% on the previous year to US$51,108 million with its brand value increasing in the same proportion to US$11,729 million. This has enabled the bank to climb the brand value rankings to fifteenth, up eleven positions on last year.

In 2009, Sberbank focused predominantly on restructuring provisions for bad loans and as a result its profits have plummeted year-on-year. However, Sberbank remains the biggest deposit-taker in the country and the key lender to the national economy. As of 1 June 2009, Sberbank accounted for more than 50% of retail deposits and had a 31% share in Russian loan market. Sberbanks’ strong brand recognition has helped the bank as people have become concerned about the possibility of small lenders failing to provide loans in the recession.

One of the most significant events for Sberbank in 2009 was its opportunity to partner in the bid for Opel. In September 2009, Sberbank and Canadian car parts maker Magna International were selected as the preferred solution for the future of Opel by both General Motors Company and the Opel Trust. Unfortunately in November, General Motors walked away from the deal, leaving Sberbank with no compensation. Business risk in Russia has lowered over the last year and therefore monetary values have recovered. Gross Domestic Product growth has also increased significantly in Russia. The coincidence of positive indicators has had a significant impact on Russian banking brands, and in particular Sberbank in 2010.

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Brand Ranking: 2010 – 16th 2009 – 20th Brand Value: 2010 – US$11,580m 2009 – US$5,852m Brand Rating: 2010 – AA- 2009 – A- Domicile: France

Société Générale (SocGen), is the third largest corporate and investment bank in the euro zone by net banking income and is France’s second most valuable banking brand with a brand value of US$11,580 million (a 98% increase in value compared with 2009).

In March 2009 SocGen received the largest pay-out from AIG’s bailout, amounting to US$11.9 billion, compared with other European banks including Deutsche Bank and Barclays. SocGen struggled in the first two quarters of 2009 reporting significant losses due to a devaluation of assets linked to U.S. real estate and increased losses on bad loans. However, SocGen managed to rebound with overall revenues excluding non-recurring for the initial 9 months in 2009 up 11.9% against the same period in 2008.

Having improved its performance, SocGen raised €4.8 billion by issuing new shares to pay back the financial support it received from the French government. In addition, it took full control of the French Retail bank Crédit du Nord after buying out a 20 percent stake from Dexia SA.

SocGen has performed particularly well in its Corporate & Investment Banking division throughout the year, being voted leading global provider in equity derivatives in the 2009 Institutional End-Users Rankings and the Interdealer Rankings, published in Risk Magazine. It was also named “Most Innovative Bank in Equity Derivatives” at The Banker magazine’s 2009 Investment Banking Awards.

Brand Ranking: 2010 – 17th 2009 – 19th Brand Value: 2010 – US$10,727m 2009 – US$6,008m Brand Rating: 2010 – AA- 2009 – A+ Domicile: Spain

BBVA is Spain’s second most valuable bank brand. Despite the tough economic climate, BBVA has managed to increase its brand value this year from US$6,008 million to US$10,727 million (a 78.5% increase in brand value) and has improved its brand rating from an A+ brand to AA-.

Although it has been exposed to bad debt strains, BBVA has outperformed analyst and shareholder expectations consistently throughout the year. It has focused on strengthening and growing its franchises around the world by acquiring Guaranty Bank from FDIC in the US and raising its stake in China’s Citic Bank from 4.93% to 15%, making it the second-biggest European bank in Asia after HSBC. In addition, BBVA Group’s leadership in Latin America continues to provide a key competitive advantage for channeling trade flows between it and Asia.

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Brand Ranking: 2010 – 18th 2009 – 18th Brand Value: 2010 – US$9,862m 2009 – US$6,703m Brand Rating: 2010 – AA- 2009 – AA- Domicile: Germany

Deutsche Bank has maintained its position as Germany’s leading banking brand and the world’s 18th most valuable banking brand, increasing its value from US$6,703 million to US$9,862 million.

Despite doubling its bad debt provisions in the second quarter and simultaneously dealing with tensions from government to supply liquidity into the economy, Deutsche Bank has reported a relatively steady performance throughout the year with good liquidity and capital position.

Its capital strength is expected to take a knock with the recent acquisitions it has undertaken, including acquiring the private banking operations of Luxembourg-based Sal. Oppenheim Jr. for 1 billion to boost its wealth management operations; buying ABN AMRO’s assets from the Dutch state to enhance its Dutch operations and potentially increasing its stake in Germany’s largest retail bank Postbank. All of these acquisitions are set to help the bank overcome its overdependence on its declining investment bank.

Brand Ranking: 2010 – 19th 2009 – 16th Brand Value: 2010 – US$9,615m 2009 – US$7,053m Brand Rating: 2010 – AA 2009 – AA Domicile: China

Bank of China is China’s largest foreign exchange lender and the third most valuable bank brand in the country. Although the bank has increased its brand value from US$7,053 million to US$9,615 million and brand rating from A- to AA it has slid down the rankings from 16th place to 19th surrendering its position to stronger European banks.

Whilst western banks struggled to find funding during the subprime crisis, Bank of China, like many other Chinese Banks, has access to a large deposit pool for lending purposes, stimulated by governments lending policies, which have leveraged the banks performance during the year. The bank has been able to increase its brand profile throughout the world as it is one of the few lenders still issuing low-rate mortgages.

However, Bank of China has lost out on some of its key strategic partnerships during the year including Royal Bank of Scotland, which sold its 4.3% stake to raise capital following the Group’s bailout by the UK government; the Swiss bank UBS sold its US$900 million stake and a foundation set up by billionaire Li Ka-shing amounting to US$511 million. These partnerships were largely a means for Bank of China to better understand western technological and risk management practices.

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Brand Ranking: 2010 – 20th 2009 – 13th Brand Value: 2010 – US$8,430m 2009 – US$7,668m Brand Rating: 2010 – AA 2009 – AA+ Domicile: Switzerland

Credit Suisse remains Switzerland’s most valuable banking brand but has dropped from 13th place to 20th in the overall global bank brand rankings.

Despite suffering significant write downs and reporting its largest ever annual loss in 2008, Credit Suisse has managed to post recurrent profits for the first three quarters of 2009 based on improved performance from its private and investment banking arms.

However, the tables have turned again with it suffering additional large write-downs for leveraged financial and structured products along with losses linked to the discontinued operations of part of its fund management arm it sold off to Aberdeen Asset Management in July 2009.

The roller coaster ride Credit Suisse has endured over the year will require the brand to focus on re-establishing trust among its key stakeholders. In an attempt to build consumer confidence, Credit Suisse has recently signed up a long-term sponsorship with Roger Federer to embody the values the bank embraces along with launching a new advertising campaign with the slogan ‘One Credit Suisse’ to show how the company can serve the needs of different clients.

31 New International Standard on brand valuation

David Haigh, CEO, Brand Finance plc

In 2007 the International Organization for Standardization (‘ISO’), a worldwide federation of national standard setting bodies, set up a task force to draft an International Standard (‘IS’) on monetary brand valuation.

After 3 years of discussion and deliberation IS 10668 – Monetary Brand Valuation – will be released in early 2010. This sets out the principles which should be adopted when valuing any brand.

The new IS applies to brand valuations commissioned for all purposes, including:

• Accounting and financial reporting • Insolvency and liquidation • Tax planning and compliance • Litigation support and dispute resolution • Corporate finance and fundraising • Licensing and joint venture negotiation • Internal management information and reporting • Strategic planning and brand management

The last of these applications includes:

• Brand and marketing budget determination • Brand portfolio review • Brand architecture analysis • Brand extension planning

Under IS 10668 the brand valuer must declare the purpose of the valuation as this affects the premise or basis of value, the valuation assumptions used and the ultimate valuation opinion, all of which need to be transparent to a user of the final brand valuation report.

Requirements of an ISO compliant brand valuation?

IS 10668 is a ‘meta standard’ which succinctly specifies the principles to be followed and the types of work to be conducted in any brand valuation. It is a summary of existing best practice and intentionally avoids detailed methodological work steps and requirements.

As such IS 10668 applies to all proprietary and non-proprietary brand valuation approaches and

32 methodologies that have been developed over domains or other related IPR intended to the years, so long as they follow the fundamental identify goods and services and which create principles specified in the meta standard. IS 10668 distinctive images and associations in the minds of specifies that when conducting a brand valuation the stakeholders, generating economic benefits for the brand valuer must conduct three types of analysis branded business. before passing an opinion on the brand’s value. The brand valuer is required to assess the legal These are Legal, Behavioural and Financial protection afforded to the brand by identifying each analysis. All 3 types of analysis are required of the legal rights that protect it, the legal owner of to arrive at a thorough brand valuation opinion. each relevant legal right and the legal parameters This requirement applies to valuations of existing influencing negatively or positively the value of the brand. brands, new brands and brand extensions. It is vital that the brand valuation includes an assessment of the legal protection afforded to the brand in each geographical jurisdiction and product or service registration category. These legal rights vary between legal systems and need to be carefully considered when forming the brand valuation opinion. For example, the legal rights protecting brands exist at a national (UK), supra- national (EU) and global (WIPO) level and have Module 1 Legal analysis different characteristics. The first requirement is to define what is meant by ‘brand’ and which intangible assets should be Extensive due diligence and risk analysis is included in the brand valuation opinion. required in the Legal analysis module of an IS 10668 compliant brand valuation. It should be IS 10668 begins by defining Trademarks in noted that the Legal analysis must be segmented conventional terms but it also refers to other by type of IPR, territory and business category. Intangible Assets (‘IA’) including Intellectual Property Rights (‘IPR’) which are often included The brand valuation opinion may be affected in broader definitions of ‘brand’. positively or negatively by the distinctiveness, scope of use or registration (territory and business International Financial Reporting Standard (‘IFRS’) category), extent of use, notoriety of the brand, 3, specifies how all acquired assets should be risk of cancellation, priority, dilution and the ability defined, valued and accounted for post-acquisition. of the brand owner to enforce such legal rights. It refers to 5 specific IA types which can be separated from residual Goodwill arising on acquisition. Module 2 Behavioural analysis These are: technological, customer, contractual, artistic and marketing related IA.

IS 10668 mirrors this classification by defining brands as marketing related IA, including trademarks and other associated IPR. This refers inter alia to design rights, domain names, copyrights and other marketing related IA and IPR which may be included in a broader definition The second requirement when valuing brands of ‘brand’. under IS 10668 is a thorough behavioural analysis. The brand valuer must understand and form an The brand valuer must precisely determine the opinion on likely stakeholder behaviour in each bundle of IA and IPR included in the definition of the geographical, product and customer of ‘brand’ subject to valuation. He may include segments in which the subject brand operates. names, terms, signs, symbols, logos, designs,

33 © Brand Finance plc 2010 New International Standard on brand valuation

To do this it is necessary to understand: Brand Valuation Approaches

• market size and trends - determined by Brand Valuation conducting a critical review of predicted trends Approaches in distribution channels, customer demographics, market volumes, values and margins. • contribution of brand to the purchase decision Market Cost Income Approach - determining the monetary brand contribution in Approach Approach the geographical, product and customer segments under review. Based on an Based on the Based on estimating estimate of the premise that a the expected future, • attitude of all stakeholder groups to the brand - price expected to be prudent investor after-tax cash to assess the long term demand for the realised if the brand would not pay more flows attributable brand, any risks to the branded business and were to be sold in an for a brand than the to the brand then open market. cost to recreate, discounting them the appropriate cost of capital. replace or reproduce to a present value • all economic benefits conferred on the branded an asset of using an appropriate business by the brand – to assess the similar utility. discount rate. sustainability of future revenues and profits. Brand Valuation Income Approach Methods The brand valuer needs to research brand value Brand Valuation drivers, including an evaluation of relevant Approaches stakeholders’ perceptions of the brand in comparison with competitor brands. Measures commonly used to understand brand strength Market Cost Income Approach include awareness, perceptual attributes, Approach Approach knowledge, attitude and loyalty. The brand valuer needs to assess the brand’s strength in order to Indirect or Direct Methods estimate future sales volumes, revenues and risks. Residual Methods

Royalty relief Income-split Module 3 Financial analysis method method

Price Premium Multi-period excess & Volume Premium earnings method method

Incremental cash flow method

• Market approach The third requirement when valuing brands under The market approach measures value by reference IS 10668 is a thorough financial analysis. to what other purchasers in the market have paid for similar assets to those being valued. IS 10668 specifies three alternative brand The application of a market approach results in an valuation approaches - the Market, Cost and estimate of the price expected to be realized if the Income Approaches. The purpose of the brand brand were to be sold in the open market. Data on valuation, the premise or basis of value and the the price paid for comparable brands is collected characteristics of the subject brand dictate which and adjustments are made to compensate for primary approach should be used to calculate differences between those brands and the brand its value. under review.

As brands are unique and it is often hard to find relevant comparables this is not a widely used approach.

© Brand Finance plc 2010 © Brand Finance plc 2010 34 • Cost approach The Royalty Relief method is widely used because it is grounded in commercial reality and can be The cost approach measures value by reference to benchmarked against real world transactions. the cost invested in creating, replacing or reproducing the brand. This approach is based on the premise • Price Premium and Volume Premium methods that a prudent investor would not pay more for a brand than the cost to recreate, replace or reproduce The Price Premium method estimates the value an asset of similar utility. of a brand by reference to the price premium it commands over unbranded, weakly branded or As the value of brands seldom equates to the costs generic products or services. In practice it is often invested creating them (or hypothetically replacing or difficult to identify unbranded comparators. To reproducing them) this is not a widely used approach. identify the full impact on demand created by a brand the Price Premium method is typically used • Income approach in conjunction with the Volume Premium method.

The income approach measures value by reference The Volume Premium method estimates the value of to the economic benefits expected to be received a brand by reference to the volume premium that it over the remaining useful economic life of the generates. Additional cash flows generated through a brand. This involves estimating the expected volume premium are determined by reference to an future, after-tax cash flows attributable to the analysis of relative market shares. The additional cash brand then discounting them to a present value flow generated by an above average brand is deemed using an appropriate discount rate. to be the cash flow related to its ‘excess’ market share. In determining relevant volume premiums the Under the income approach, risks that are not already valuer has to consider other factors which may explain reflected in future cash flows must be considered a dominant market share. For example, legislation in the discount rate. The discount rate used for which establishes a monopoly position for one brand. discounting future expected cash flows attributable to a brand is usually derived from the Weighted Average Taken together the Price Premium and Volume Cost of Capital (‘WACC’) of the business. Premium methods provide a useful insight into the value a brand adds to revenue drivers in the As the value of brands stems from their ability business model. Other methods go further to to generate higher profits for either their existing explain the value impact of brands on revenue and or potential new owners this is the most widely cost drivers. accepted and used brand valuation approach. • Income-split method When conducting a brand valuation using the income approach various methods are suggested The income-split method starts with net operating by IS 10668 to determine future cash flows. profits and deducts a charge for total tangible capital employed in the branded business, to • Royalty Relief method arrive at ‘economic profits’ attributable to total intangible capital employed. Behavioural analysis This is the most widely used method used to is then used to identify the percentage contribution determine brand cash flows. This method assumes of brand to these intangible economic profits. that the brand is not owned by the branded business The same analysis can be used to determine the but is licensed in from a third party. The value is percentage contribution of other intangible assets deemed to be the present value of the royalty such as patents or technology. The value of the payments saved by virtue of owning the brand. brand is deemed to be the present value of the percentage of future intangible economic profits The royalty rate applied in the valuation is determined attributable to the brand. after an in-depth analysis of available data from licensing arrangements for comparable brands and an • Multi-period excess earnings method appropriate split of brand earnings between licensor and licensee, using behavioural and business analysis. The multi-period excess earnings method is similar

35 © Brand Finance plc 2010 New International Standard on brand valuation

to the income-split method. However, in this Having run into serious difficulties and being part- case the brand valuer first values each tangible nationalised during the financial crisis, the RBS and intangible asset employed in the branded brand reputation suffered considerably. However, business (other than the brand). He uses a variety the fact that RBS group had a portfolio of brands of valuation approaches and methods depending meant that adverse consumer reactions were ring on what is considered most appropriate to each fenced in RBS. Natwest, Coutts, Citizens and specific asset. Ulster Bank among others have come through the crisis with less reputational damage. Nevertheless, Having arrived at the value of all other tangible and RBS’s brand portfolio is highly complex and it intangible assets employed in the branded business is likely that at least some of the brands will be a charge is then made against earnings for each of phased out or divested. Some divestments will be these assets, leaving residual earnings attributable to required by the EU competition authorities, others the brand alone. The brand value is deemed to be the will be part of the commercial review given current present value of all such residual earnings over the market circumstances. remaining useful economic life of the brand. Brand Architecture reviews considers whether • Incremental cash flow method individual brands are too fragmented and extended. A good example of this is HSBC which has over the The incremental cash flow method identifies all years transitioned a huge and complex brand portfolio cash flows generated by the brand in a business, into a strong and focussed mono-brand. HSBC has by comparison with comparable businesses with systematically eliminated sub-brands. It continues to no such brand. Cash flows are generated through review its brand architecture which still includes sub- both increased revenues and reduced costs. brands such as First Direct, The Saudi British Bank and British Arab Commercial Bank, Sinopia and Halbis. This is a more detailed and complex approach The benefit is clarity on a worldwide basis, standout which tends not to be used in technical brand from more fragmented organisations and far greater valuations but is extremely useful for strategic, media communications efficiency. commercial purposes. For example, when Virgin negotiates a new brand license with a new In both these cases, brand valuation analysis can help licensee. The incremental alue added to the to evaluate the most effective value adding strategy. licensee’s business form’s the starting point for the Brand valuation can help banks rationalise and rebuild negotiation. their brand portfolios and trim their brand architecture to best address current market conditions. Bank brand valuations? Brand Dashboards IS 10668 was developed to provide a consistent framework for the valuation of local, national and Having determined an ideal brand portfolio and international brands both large and small. The primary architecture at a point in time it is recommended to concern was to create an approach to brand valuation create a long term brand dashboard to monitor changes which was transparent, reconcilable and repeatable. in brand equity and value so that swift corrective action In the wake of the standard’s launch it is expected that can be taken if necessary. many banks will either value their brands for the first time or revalue them compliant with the standard. Conclusion

Brand Valuations and Brand Strategy? IS 10668 gives brand valuation analysis the institutional credibility which it previously lacked. Common commercial applications of brand valuation It professionalises brand management. As evidence are brand portfolio and brand architecture reviews. of this SAM Group, which produces the Dow Jones Sustainability Index, intends to upweight businesses Brand Portfolio reviews consider whether the in the DJSI if they adopt ISO 10668 principles. This right number of brands and sub-brands are in the is based on the view that businesses which manage portfolio. A good example of this is RBS which is their brands systematically are likely to be more currently evaluating its ‘house of brand’s’ strategy. sustainable long term.

Two of the top three performing bank brands are HSBC and Santander. They both have a conservative outlook that has helped them to weather the financial storm better than most.

From a brand standpoint, the comparison goes further.

They are both global citizens - Santander has a strong Latin-American dimension, HSBC a strong Asian base.

Both HSBC and Santander have embraced a unified brand strategy – with a clear process for assimilating new acquisitions. The migration of the Abbey brand to Santander follows a similar path to that of Midland Bank to HSBC. Any risk of sacrificing brand equity has been managed through good communications and a staged approach to introducing the new brand. Inertia means few customers are lost along the way.

Pursuing a unified brand strategy and focusing their resources on building a single brand has, over time, proven to deliver a better return on investment than spreading resource across a portfolio of brands.

Interestingly, in an era of fragmentation, both brands have pursued broadcast media strategies, to build their brands - notably Santander through Formula 1 sponsorship and HSBC through clever advertising at airport gates and heavy use of outdoor and press advertising. This strategy of course makes sense if you are building a single, global brand, as there is little wastage in the media spend.

Both banks have a simple but strong brand identity. And they manage the execution of their brands ruthlessly. It is this consistency, which builds familiarity and recognition – from highstreet, to billboard, to boarding gate.

The strong use and ownership of the colour red is also common to both brands. Infact the colour red is common to all the top 5 performing brands in the league table. Perhaps this reflects a bigger powershift in the global economy from West to

37 © Brand Finance plc 2010 Positioning for future success

Sholto Lindsay-Smith, Managing Director, UffindellWest

East. In China the colour red is associated with also empower the consumer to make more courage, success, fortune and happiness. From an informed financial decisions. eastern perspective, red is also the colour of the root chakra, which represents security and growth. This will play strongly to the post-crisis consumer This stands in contrast to the once dominant use of who will adopt a more conscious and informed corporate blue. approach to risk. This does not mean consumers will all be risk averse. But they will scrutinize the Having weathered the storm successfully, trade off between risk and reward and be more these brands offer a port in the storm to nervous discerning about the value they receive. consumers. But trust and resilience will not be enough to sustain a leading position. 3. The adoption of a new tone of voice and communication style, based on realism In the post-crisis world we are likely to see three trends shape the winning bank Photolibraries, such as Getty, are already brands of the future: reporting a shift in the type of imagery banks and other corporates are using in their marketing 1.A move to place the customer’s agenda ahead communications. It is best expressed as a shift of the bank’s agenda towards realism. Staged pictures, using perfect models and scenes of unattainable lifestyles are Traditional banks have focused on operational being rejected in favour of more realistic and efficiency, delivering value through convenience intimate images that capture real moments and tight management of costs. of human emotion. This reflects the end of an era of indulgence and wreckless spending, The entry of the highstreet grocery retailers and a new focus on humanity. It is the sign into the market, is likely to bring the introduction of the new consumer zeitgeist. of a whole new approach to banking - driven by a relentless focus on satisfying their 2010-2020 is likely to witness a radical customer needs. transformation of the banking brandscape.

The traditional bank brands which have a job to rebuild trust will have to demonstrate that they The winning bank brands of the future will will do what is right for the customer – in other put the customer’s agenda first and make banking simpler. words, put the customer’s agenda ahead of the bank’s agenda. The winning brand of the future is likely to be one that puts the customers’ agenda first. An If the traditional banks expertise is operational institution that is concerned not with what they efficiency, the retailers’ strength is customer can sell you, but rather what they can do for you. intimacy. Traditional banks will have to transform It will invest in a lifelong relationship that starts if they want to compete on this brand front. with understanding your needs rather than a pitch. It will offer a service driven by a genuine desire to arm you with the plain facts so you can 2. A trend towards simplification, driven by make an informed choice about the best place to innovation put your money. It will offer a range of products so straightforward you can manage your money Other new entrants will introduce innovation to yourself, without the need of expert help. And the market. With the granting of its new Banking it will provide you with the confidence that you License, Virgin has already stated its intent to have total capital security and can access your focus on simplification. money and move it around, when you want – without any penalties. Simplification in financial services has long been a consumer plea. It is arguably the antidote to complexity, which lies at the root of the current crisis. Simplification will not only deliver greater UffindellWest is an independent brand agency, with a strong track record in the Financial Services sector. It works in association with convenience and ease of doing business, it will Brand Finance on a number of global brand assignments.

Within the BrandFinance® Banking 500, banks’ revenue streams have been split between five sectors to allow further analysis of their brand value. These sectors include: retail, commercial, wholesale & investment, credit cards and asset management. Sectors are a ‘best fit’ grouping from the different reporting practices and terminology used by individual banks within the 500. It is important to note that while Brand Finance considers this information to be reliable, we cannot guarantee the accuracy or completeness of each bank’s reported data.

In comparing and contrasting this year’s sector split to the 2009 Banking 500 we have reanalyzed past results to ensure sectors are comparable. Due to differences in data sourcing between the 2009 and 2010’s reports, yearly change in brand value in the sectors of wholesale, investment banking and asset management are not directly comparable.

40 Retail

Brand Value: US$343,736m Brand Value Growth: 52%

Coming on the heels of a crippling 2008 which saw Consumer banks have higher market capitalisation the failure of a number of a number of retail banks, to brand value ratio than investment banks, reflecting the need to connect with the high-street 2009 has seen consumer confidence gradually consumer. The retail sector was severely affected return to the retail banking sector. Global financial by the recession and it is those banks that were markets have suffered a serious impact from the able to hold on to their retail consumers that financial crisis and economic recession and the have been able to show strong growth after retail banking industry continues to adjust to these an extremely difficult year. drastic shifts in the marketplace.

Brand value in the retail sector has seen a substantial rise of US$118 billion which represents an increase of 52% over the year. This increase corresponds with increased performance, with many banks posting significant gains in profit throughout the year. As such all major United States banks have paid back their TARP loans from the Government. This includes the ‘Big Four’ that have collectively repaid about US$150 billion.

One big retail bank that filed for bankruptcy was the North Carolina based Wachovia. Also a notable absentee from the list of top retail banking brands is Citi whose retail division experienced difficulties this year. However, Bank of America (43% brand value increase) and Wells Fargo (52% brand value increase) both fared well taking second and third places respectively. In fact, the only brand in the top ten not to see a significant improvement in its retail brand value is the most valuable banking brand in the world HSBC with only a 5% increase.

This year has also provided an opportunity for new banks to establish themselves and this is evident by the number of new entries in the top ten including Credit Suise, Société Générale, and Sberbank, all of which have more than doubled their retail brand value. However, the most significant movement in the table this year is Santander whose retail brand value more than doubled pushing it four places to take up the number one spot.

41 © Brand Finance plc 2010 Sector Analysis

Brand Brand Brand Value Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile 2010 Rating Value Rating Market 2010 2009 Cap Market Cap (US$ 2010 2009 2009 Cap Cap (%) millions) (%) 1 4 Santander Spain 22,990 AAA+ 128,087 18% 9,757 AA 54,881 18% Bank of United 2 2 22,630 AAA+ 111,754 20% 15,791 AAA 71,228 22% America States Wells United 3 3 18,463 AA 131,225 14% 12,130 AA 108,691 11% Fargo States United 4 1 HSBC 17,814 AAA+ 193,794 9% 16,969 AAA+ 131,577 13% Kingdom

5 5 Bradesco Brazil 12,879 AAA- 56,583 23% 7,601 AA 29,794 26%

6 7 BBVA Spain 9,753 AA- 69,134 14% 5,468 A+ 39,039 14% United 7 8 Chase 8,429 AA 69,901 12% 5,392 A+ 52,571 10% States Credit 8 19 Switzerland 8,070 AA 50,468 16% 2,739 AA+ 32,484 8% Suisse Société 9 14 France 8,004 AA- 44,662 18% 3,576 A- 25,288 14% Générale

10 23 Sberbank Russia 6,733 AA+ 51,108 13% 2,515 AA- 19,616 13%

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$111,004m Brand Value Growth: 51%

The Commercial banking sector has seen its brand value rise by 51% over the year to $111 billion and is the third largest sector behind retail and wholesale/investment banking in terms of brand value. This highlights the effect of the resumption in banks’ willingness to lend money and the subsequent slackening of liquidity restrictions seen globally.

All the banks in the top ten have experienced a rise in brand value with many banks showing increases in excess of 100%. There are two new entrants in the top ten, UniCredit and RBC, with the former achieving a 167% increase in its brand value and jumping eight places to eighth place. Other big movers include Rabobank which has risen to third place and Banco do Brasil that has climbed six places to poll position with an increase in brand value of 132%.

The top ten contains three of the ‘Big Four’ state- owned Chinese banks, which have been lending heavily over the year. In the first ten months of 2009, Chinese commercial banks lent out a total 8.9 trillion yuan which is 2.5 times the amount of the same period last year.

In the top ten there is only one bank represented from the United Kingdom (HSBC) and the United States (Bank of America) which have both increased their brand value by a relatively small amount and fallen down the rankings to seventh and ninth position respectively. The lack of commercial banks in the top ten from these countries demonstrates the apprehension that still remains with regards to commercial banking services in these major economies, particularly with commercial loans. HSBC’s fall to seventh place is significant as it has also fallen in its two other primary sectors, retail and wholesale/ investment banking, thus seeing its dominant position fading in these respective sectors. However, despite this, it still remains most valuable banking brand in the world.

43 © Brand Finance plc 2010 Sector Analysis

Brand Brand Brand Value Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile 2010 Rating Value Rating Market 2010 2009 Cap Market Cap (US$ 2010 2009 2009 Cap Cap (%) millions) (%) Banco do 1 7 Brazil 6,662 AA+ 43,135 15% 2,864 AA- 15,804 18% Brasil China 2 2 Construction China 5,734 AA+ 208,117 3% 4,257 AA 127,443 3% Bank

3 8 Rabobank Netherlands 5,627 AA+ n/a n/a 2,624 n/a n/a n/a

4 1 ICBC China 5,301 AA+ 225,368 2% 4,372 A+ 186,089 2%

5 10 Sberbank Russia 4,996 AA+ 51,108 10% 1,729 AA- 19,616 9% Bank of 6 6 China 4,321 AA 149,395 3% 3,017 AA 107,672 3% China United 7 4 HSBC 4,015 AAA+ 193,794 2% 3,291 AAA+ 131,577 3% Kingdom

8 15 UniCredit Italy 3,445 A+ 44,681 8% 1,279 BBB 15,389 8% Bank of United 9 5 3,417 AAA+ 111,754 3% 3,286 AAA 71,228 5% America States

10 n/a RBC Canada 2,856 AA 71,697 4% n/a n/a n/a n/a

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$127,034m Brand Value Growth: 35%

Investment/Wholesale, which represents the second largest sector in terms of brand value behind Retail banking, has risen in brand value by 35% over 2009 to $127 billion.

Despite the financial crisis, the top ten is completely dominated by Western banks and the year has seen many banks return to performance levels that they were achieving before the crisis with some even performing better than pre crisis levels. These banks have been buoyed by a combination of the strong economic performance in the emerging markets, particularly Asia, and the lack of realistic competition outside of the mature markets.

All banks in the top ten have seen their brand value rise in 2009 except for Deutsche Bank which has fallen six places to tenth due to a 28% dip in its brand value. There are three new entrants in the top ten with Standard Chartered being the biggest mover jumping nine places to fifth with a 104% increase in brand value. J.P. Morgan maintains its top ranking where its Investment banking division reported a 320% year on year increase in net income for the first nine months of 2009.

Over the course of the year Investment bankers have come under fire because of the massive bonuses that they either received or are set to receive so close off the heels of the financial crisis. American banks such as J.P. Morgan have received heavy criticism for setting aside huge sums of money as bonuses so soon after paying off its TARP loan. In the United Kingdom, the Government is seeking to clamp down on the bonus culture sparking fear of a mass exodus of banking talent from the country.

45 © Brand Finance plc 2010 Sector Analysis

Brand Brand Brand Value Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile 2010 Rating Value Rating Market 2010 2009 Cap Market Cap (US$ 2010 2009 2009 Cap Cap (%) millions) (%) United 1 1 JP Morgan 10,821 AA- 102,425 11% 8,079 AA- 48,571 17% States Goldman United 2 2 9,573 AAA+ 93,316 10% 5,754 AAA- 36,361 16% Sachs States Morgan United 3 7 7,907 A+ 45,931 17% 3,104 A+ 15,399 20% Stanley States BNP 4 3 France 6,776 AA 67,144 10% 4,860 AA- 49,480 10% Paribas Standard United 5 13 3,623 AAA- 51,466 7% 1,769 AA+ 16,820 11% Chartered Kingdom Société 6 9 France 3,576 AA- 44,662 8% 2,215 A- 25,288 9% Générale United 7 10 Barclays 3,494 AA 56,155 6% 2,161 A- 19,998 11% Kingdom United 8 6 HSBC 3,488 AAA+ 193,794 2% 3,507 AAA+ 131,577 3% Kingdom Wells United 9 8 3,453 AA 131,225 3% 2,378 AA 108,691 2% Fargo States Deutsche 10 4 Germany 3,213 AA- 43,273 7% 4,494 AA- 19,781 23% Bank

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$32,038m Brand Value Growth: 57%

In 2008 asset management saw the smallest decline in brand value of all banking divisions. This year has seen significant brand value growth of 57%, though this is relatively modest in comparison to some other divisions such as credit cards which saw growth of 64%. Combined brand value going into 2010 is US$32,038 million. Despite falling seven places on the league table, UBS is again the clear leader in the sector with a brand value of US$7,908 million, up from US$6,685 million last year. Asset management banking now makes up nearly 96% of UBS’ portfolio, an increase from 88% last year. Goldman Sachs is the second most significant player in asset management banking, with a brand value of US$4,314 million. Five more US banks populate the list, namely; Citi, Black Rock, Morgan Stanley Smith Barney, JP Morgan and Invesco.

According to the Financial Times’ FundFire service the superficially slow pace of change in the asset management business masks forthcoming dramatic developments. The larger institutions are becoming larger still, in 5 years the average assets of a top ten bank have risen from US$500 billion to nearly US$1 trillion today. The largest institutions will soon top US$2 trillion. Risk management and income generation and alpha/beta separation will become increasingly important performance indicators. Up to 30% of the earnings of leading firms will come from products not currently on offer. Finally, there will be greater cooperation between asset managers and insurers and “the alternatives world will experience a shakeout of non-alpha generators.” Those changed will be spurred by a looming wave of retirement, “worsening pension deficits” and a “different approach to evaluating – and paying for – performance.”

47 © Brand Finance plc 2010 Sector Analysis

Brand Brand Brand Value Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile 2010 Rating Value Rating Market 2010 2009 Cap Market Cap (US$ 2010 2009 2009 Cap Cap (%) millions) (%) 1 n/a UBS Switzerland 7,908 AA- 62,240 13% n/a n/a n/a n/a Goldman United 2 7 4,314 AAA+ 93,316 5% 999 AAA- 36,361 3% Sachs States BNP 3 4 France 2,145 AA 67,144 3% 1,333 AA- 49,480 3% Paribas United 4 5 Citi 1,580 A+ 70,105 2% 1,191 A 36,498 3% States United 5 n/a BlackRock 1,580 AA 29,722 5% n/a n/a n/a n/a States Morgan Stanley United 6 n/a 1,206 A- 9,762 12% n/a n/a n/a n/a Smith States Barney

7 9 RBC Canada 974 AA 71,697 1% 617 AA 42,529 1% United 8 n/a JP Morgan 911 AA- 102,425 1% 2 AA- 48,571 0% States

9 13 Natixis France 910 AA- 17,513 5% 418 AA- 5,998 7% United 10 n/a Invesco 714 AA- 8,858 8% n/a n/a n/a n/a States

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$37,667m Brand Value Growth: 64%

It has been a tough year for the credit card market as consumers cutback on their spending; card issuers have tightened up on their lending standards and credit card defaults have soared to record levels as consumers struggle to pay off debts. Furthermore, in May 2009, a new credit card act 2009 was issued in the United States, which will limit card issuers from raising interest rates and bans certain billing and payment practices taking effect as of the 22nd Feb 2010.

Despite credit card market turmoil, all the top ten credit card brands have increased in value except for the two Japanese brands MUFG (1% drop in brand value) and Credit Saison (12% drop in brand value). Furthermore, the total brand value of the credit card sector has grown by 64% to US$37,667million. The credit card top ten rankings are also once again dominated by United States brands.

American Express remains the most valuable credit card brand with an increased brand value of 76% to US$11.6 billion and a consistent AA brand rating. American Express has had an arduous year dealing with lower consumer spending, record credit losses, restructuring charges and repaying government funds. However, the brand has continued to build brand equity by continuing to excel in customer satisfaction and focusing efforts on its Membership Rewards programs.

A newcomer to this year’s credit card rankings in second place is another United States credit card brand, Citi with a brand value of US$6,218million and a brand rating of A+. Citi, like American Express, has been focusing on exclusive discounts and benefits to new and current cardholders throughout the year.

In third place is VISA, which has focused to a large extent on its debit card market in the past year as a result of its declining credit card business. VISA is followed by two of its key United States rivals Chase and Mastercard in fourth and fifth place respectively.

49 © Brand Finance plc 2010 Sector Analysis

Brand Brand Brand Value Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile 2010 Rating Value Rating Market 2010 2009 Cap Market Cap (US$ 2010 2009 2009 Cap Cap (%) millions) (%) American United 1 1 11,647 AA 42,043 28% 6,632 AA 25,866 26% Express States United 2 n/a Citi 6,218 A+ 70,105 9% n/a n/a n/a n/a States United 3 2 VISA 4,850 AAA- 55,159 9% 2,755 AA+ 44,124 6% States United 4 3 Chase 4,392 AA 69,901 6% 2,724 A+ 52,571 5% States United 5 4 MasterCard 3,186 AA+ 28,521 11% 2,056 AA+ 18,812 11% States United 6 5 Barclaycard 2,815 AA 56,155 5% 1,457 A- 19,998 7% Kingdom United 7 6 Discover 1,690 A- 8,055 21% 1,043 B 4,900 21% States

8 7 MUFG Japan 820 A+ 56,607 1% 826 A+ 59,333 1% Credit 9 8 Japan 488 A 2,125 23% 545 A- 2,374 23% Saison

10 10 Yapı Kredi Turkey 400 AA 9,767 4% 308 A+ 5,308 6%

* Market Capitalisation 2010 - 27 October 2009

Central America Total Brand Value: US$1,786m p57 Africa Total Brand Value: US$14,911m p65

South America Total Brand Value: US$59,775m p59

51 Regional Analysis

Whilst 90% of the total brand value lost in the previous years’ ranking was contributed by Europe and North America, this year only 60% of this year’s Global Banking 500’s recovery is from the same two regions. However, most of this recovery has resulted from Europe’s bounce back particularly in continental European countries. North America on the other hand has struggled to recover compared to other global regions that have emerged from the global crisis earlier, and somewhat less harmed. North America’s brand value only grew by 29% in 2009.

There has been significant growth in brand value in South America (84% from 2009), Europe (67% from 2009), and the Middle East (78% Middle East from 2009). In the Middle East growth has been particularly supported by Middle Eastern wealth Total Brand Value: and the perception of their ethical, trustworthy and conservative, low risk credentials. The Asian region US$13,150m has grown a conservative 31% in terms of brand value. Asia’s recovery has been significantly lower than a number of global regions. However, this p63 growth is not entirely reflective of the whole of the Asian region. The contribution of the emerging markets of India and China grew in brand value by a 137% and 58% respectively. However, Japan’s brand value growth has slightly dropped by 3% to approximately US$20 billion which reflects the instability in the Japanese banking sector during the financial crisis. Africa The number of European brands in this year’s study has risen from 174 bank brands to 197. In contrast, Total Brand Value: North America has seen 11 brands drop out from US$14,911m 106 to 95 this year and in Asia there has been Asia 18 brands drop out from 120 to 102. p65 Total Brand Value: US$119,890m p61 Pacific Total Brand Value:US$35,409m p67

52 Europe

Brand Value : US$257,209m Brand Value Growth: 67% Number of banks: 197

Over the year, Europe has managed to recover from the global financial crisis. In fact, by the end of 2009 the only major economy still in recession was the UK. As such, confidence has returned to European financial institutions and has greatly contributed to a staggering increase in brand value of $103 billion in the region which amounts to a 67% rise. This is even more significant due to the fact that the region is the largest contributor of brand value and represents 36% of the global total. Additionally, Europe contributed 23 new brands to the top 500.

But the year has also seen the demise of many well known bank brands, among them Fortis which was bought by BNP Paribas, and ABN Amro, which was bought by RBS and Santander.

Europe governments have poured money into struggling banks. The bail-outs amounted to trillions of dollars, with the UK government providing £850 billion in support to its banks. Whilst some banks around Europe have begun to payback their loans, there is no indication of UK banks repaying funds any time in the near future.

All the banks in the top ten have recorded significant rises in brand value with some banks recording almost 200% increases. The top ten has seen two new entrants, Sberbank and Deutsche Bank, with the former showing a 158% increase in brand value, thus propelling it to number two. HSBC has been replaced at the top by Santander, which has achieved a 136% increase in its brand value. Santander is stepping up its presence in the UK by renaming over 1000 branches of the former Abbey and Bradford & Bingley banks and is well placed going into the next year to exploit its brand as evidenced by its significant excess in brand value over its nearest competitor.

53 © Brand Finance plc 2010 Regional Analysis

2 7 Sberbank Russia 11,729 AA+ 51,108 23% 4,531 AA- 19,616 23% BNP 3 2 France 10,654 AA 67,144 16% 7,293 AA- 49,480 15% Paribas United 4 1 HSBC 10,645 AAA+ 193,794 5% 8,790 AAA+ 131,577 7% Kingdom Société 5 6 France 9,879 AA- 44,662 22% 5,131 A- 25,288 20% Générale United 6 5 Barclays 9,040 AA 56,155 16% 5,440 A- 19,998 27% Kingdom

7 10 UniCredit Italy 8,172 A+ 44,681 18% 3,058 BBB 15,389 20% Credit 8 11 Switzerland 7,371 AA 50,468 15% 2,959 AA+ 32,484 9% Suisse Deutsche 9 16 Germany 7,051 AA- 43,273 16% 2,604 AA- 19,781 13% Bank

10 8 UBS Switzerland 7,022 AA- 62,240 11% 4,495 AA- 37,889 12%

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$165,689m Brand Value Growth: 29% Number of banks: 95

The North American region contributed 23% to the Canadian bank brands have remained relatively total global brand value and has grown by 29% healthy throughout the turmoil of the past in 2010. The number of North American banking 12 months, because of minimal Asset Backed brands in the global 500 has decreased by eleven Commercial Paper (ABCP) losses and stability to 95 in 2010. of the domestic regulatory system. In 2010, significant expansion into US market should be 2009 was a year of slow recovery for banking, anticipated by the likes of RBC (Royal Bank of and the reputation of bank brands, in North Canada) and TD (Toronto Dominion). America. In the United States, most banks have been eager to make Troubled Asset Relief Program (TARP) repayments as swiftly as possible, in order to limit the restrictions placed on them by Government due to TARP.

The positive effect of this is that banks are observed to be solvent again, restoring customers’ basic level of trust in individual brands, and in the system. However, the public is aware that a significant reason for paying off TARP is to get rid of the regulations associated with it, and allow banks to pay staff bonuses in full. Resentment remains that Main Street is suffering because of problems caused by Wall Street.

In particular, Goldman Sachs became a scapegoat for the public to vent its fury about bonus payments, which the bank appeared to take completely in its stride, perhaps because it lacks a retail banking arm. It has deferred some payments, particularly in the UK but has still made record bonus payouts.

Those brands which were well-positioned during the crisis are beginning to capitalise on this through acquisition and expansion. This is reflected in the brand values of Wells Fargo and HSBC in North America.

55 © Brand Finance plc 2010 Regional Analysis

Brand Brand Brand Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile Value Rating Value Rating Market 2010 2009 Cap Market Cap 2010 2010 2009 2009 Cap Cap (%) (%) Bank of United 1 1 24,174 AAA+ 111,754 22% 18,930 AAA 71,228 27% America States Wells United 2 2 21,916 AA 131,225 17% 14,508 AA 108,691 13% Fargo States United 3 5 Chase 9,933 AA 69,901 14% 6,389 A+ 52,571 12% States United 4 6 JP Morgan 8,697 AA- 102,425 8% 5,896 AA- 48,571 12% States American United 5 3 8,696 AA 42,043 21% 6,941 AA 25,866 27% Express States United 6 4 HSBC 6,696 AAA+ 193,794 3% 6,519 AAA+ 131,577 5% Kingdom Goldman United 7 17 4,838 AAA+ 93,316 5% 1,719 AAA- 36,361 5% Sachs States

8 9 TD Canada 4,835 AA+ 50,040 10% 2,963 AA- 27,598 11%

9 8 RBC Canada 4,504 AA 71,697 6% 3,847 AA 42,529 9% United 10 10 U.S. Bank 3,777 AA 45,984 8% 2,933 AA- 46,426 6% States

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$1,786m Brand Value Growth: 24% Number of banks: 4

The Central American region contributes less than 1% to the total global brand value and has grown a respectable 24% in 2010. This is however the lowest growth of all the global regions. As a result the number of Central American domiciled banking brands in the global 500 has decreased by two from 6 to 4 in 2010.

The Central American banks good starting capitalisation and liquidity enabled them to weather the storm relatively well and as a result the banks were able to come out of the crisis to a large extent unscathed and earlier than a lot of the North American cousins.

The global credit crisis had little direct impact on Central American banks due to the low levels of investment in US and European mortgage-backed securities. However, strong reliance on exports and commodity prices forced Central America into recession after consumer spending and industrial activity slowed in the US and Europe during the credit crunch. As a result, the rate of growth in lending began to decline, nonperforming loans rose, and profitability was down.

Mexico’s fifth largest bank, Banorte is once again the leading Central American brand increasing its brand value by 31%. Banorte is followed in second and third place by the two Canadian banks, CIBC and Scotiabank.

57 © Brand Finance plc 2010 Regional Analysis

2 5 CIBC Canada 314 A+ 22,201 1% 246 A+ 14,051 2%

3 4 Scotiabank Canada 283 A 42,689 1% 280 A 26,678 1% Franklin United 4 8 Templeton 267 AA- 24,760 1% 136 A 13,967 1% States Investments Banco Puerto 5 6 119 A- 1,516 8% 161 AA- 1,735 9% Popular Rico

6 10 Bancolombia Colombia 112 A+ 7,976 1% 67 BB 3,977 2% Grupo 7 7 Financiero Mexico 111 A- 9,964 1% 138 A 8,304 2% Banorte First- Caribbean 8 n/a Barbados 99 A- n/a n/a n/a n/a n/a n/a International Bank First Puerto 9 9 89 A+ 197 45% 94 A 991 9% BanCorp Rico

10 12 Credicorp Peru 60 A+ 6,861 1% 22 BBB 3,405 1%

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$59,775m Brand Value Growth: 84% Number of banks: 18

The South American region contributes 8% to the Along with Bradesco, the financial performance total global brand value and has grown by 84% and brand image of Banco do Brasil improved, in particular as Banco do Brasil made more credit in 2010. The number of South American banking available to consumers at a time when the other brands in the global 500 has increased by three private banks reduced their levels of credit. This to eighteen in 2010. This is a reflection of resilient has paid off as Banco do Brasil managed to grow performance throughout 2009 in the region its brand value by 133%.

The South American banking industry performed strongly in 2009, in comparison to the turmoil that beset North America. A large number of the South American banks performed well and managed to come out of the global crisis before a number of hard hit global regions. Specifically, the international crisis had only a minor impact on the Brazilian economy. Brazil has ten of the eighteen South American banks in the top 500.

The big Brazilian banks left the crisis in mid-2009 in a better way, both financially and as brands. Leading the South American region is once again Bradesco with a regional brand value of US$13.2billion (a 75% increase in brand value). Bradesco’s brand image has strengthened due to strong financial performance and its innovative brand and marketing program, called “Presença,” which has helped it build confidence and trust in uncertain times. In second place is the rapidly growing Spanish bank Santander which has increased its regional brand value by 136% allowing it to overtake the largest South American bank in terms of assets, Banco Itaú.

After the merging of Unibanco with Itaú in November 2008, Banco Itaú has struggled to fully incorporate Unibanco activities; in particular the gap between the two brands in terms of performance in the marketplace with Itaú being perceived as a stronger brand. Banco Itaú and Unibanco have not performed as well as other Brazilian brands and brand value has only grown by around 22% .

59 © Brand Finance plc 2010 Regional Analysis

2 3 Santander Spain 9,461 AAA+ 128,087 7% 4,010 AA 54,881 7%

3 2 Banco Itaú Brazil 6,911 AAA- 58,588 12% 5,593 AA+ 32,230 17% Banco do 4 5 Brazil 6,662 AA+ 43,135 15% 2,864 AA- 15,804 18% Brasil Goldman United 5 6 4,838 AAA+ 93,316 5% 1,719 AAA- 36,361 5% Sachs States United 6 4 HSBC 3,722 AAA+ 193,794 2% 3,027 AAA+ 131,577 2% Kingdom United 7 9 Citi 3,519 A+ 70,105 5% 815 A 36,498 2% States Morgan United 8 n/a 2,128 A+ 45,931 5% n/a n/a n/a n/a Stanley States

9 7 Unibanco Brazil 1,859 A+ 25,109 7% 1,520 A 7,714 20% United 10 26 Banamex 1,356 A+ 13,760 10% 49 A 2,017 2% States

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$119,890m Brand Value Growth: 31% Number of banks: 102

The Asian region contributed 17% to the total global brand value and has grown by 31% in 2010. The number of Asian banking brands in the global 500 has decreased by 18 to 102 in 2010.

Almost all banks in the Asian top ten have increased in brand value; however this rise is not nearly as much as was seen in more developed regions like Europe and North America, as they recover from the crisis. While the financial crisis and global recession severely affected Western economies, they did not affect Asia quite as significantly. Although the number of banks reported in the top 500 from Asia has decreased from 120 to 102, many banks in the region tend to be well capitalised and in countries such as India, banks have become far more competitive. As such the normalisation of markets has not had such a relatively profound increase in brand value in the Asian region.

As was the case last year, the top ten is dominated by Chinese banks with the gap between the major Chinese banks and the rest widening. The biggest movement in the table is by State Bank of India which has seen its brand value more than triple jumping to seventh place. Another notable entrant is Standard Chartered which has stepped up its Asian presence in recent years and grown its brand value by 59% in the region.

61 © Brand Finance plc 2010 Regional Analysis

2 1 ICBC China 11,821 AA+ 225,368 5% 9,794 A+ 186,089 5% Bank of 3 3 China 9,405 AA 149,395 6% 6,907 AA 107,672 6% China Agricultural 4 n/a Bank of China 6,032 A+ n/a n/a n/a n/a n/a n/a China United 5 4 HSBC 5,592 AAA+ 193,794 3% 5,571 AAA+ 131,577 4% Kingdom

6 5 MUFG Japan 4,597 A+ 56,607 8% 4,051 A+ 59,333 7% State Bank 7 13 India 4,327 AA+ 29,809 15% 1,341 AA 9,834 14% of India Standard United 8 10 3,075 AAA- 51,466 6% 1,931 AA+ 16,820 11% Chartered Kingdom

9 6 SMFG Japan 2,812 A 33,857 8% 2,900 A 27,941 10% Bank of 10 9 Commun- China 2,589 AA 64,383 4% 2,188 AA- 33,058 7% ications

* Market Capitalisation 2010 - 27 October 2009

Brand Value : US$13,150m Brand Value Growth: 78% Number of bank: 41

The Middle East region contributed 2% to total global brand value and has grown by 78% in 2010. The number of Middle Eastern banking brands in the global 500 has increased by six to 41 in 2010.

A significant contributor to this result is the emergence of Islamic Finance as an alternative to traditional Western banking methods, both within Muslim countries and globally as well. During the global crisis, while conventional banks nursed losses of more than US$400 billion, Islamic banks were virtually unscathed. Investors that suffered from the credit crisis sought the comfort of stricter lending rules imposed by Islamic law. Proponents of ‘Shariah’ argue that the financial crisis could have been avoided by following Islamic law.

Almost all of the banks in the Middle Eastern top ten have seen an increase in their brand values with many banks achieving as much as 100% increases as a direct result of reduced risk in the economy. Additionally, the region contributed six new brands to the top 500. Emirates NBD has risen to poll position in the Middle East rankings.

The two largest Islamic banks in the Gulf region, Al Rajhi Bank and Kuwait Finance House (by market capitalisation), have experienced differing performance with respect to their brand values over the year with the former almost doubling its brand value and the latter experiencing a slight fall in value. Of particular interest is that the only ‘foreign’ bank that has a significant exposure in the Middle East is Standard Chartered which has subsidiaries reporting Shariah compliant assets, and continues to step up its operations in the region. It will be interesting to see if other big international banks will begin to offer Islamic banking services in 2010 and try to make inroads in the Middle Eastern market in addition to providing their existing customers with a greater choice.

63 © Brand Finance plc 2010 Regional Analysis

Brand Brand Brand Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile Value Rating Value Rating Market 2010 2009 Cap Market Cap 2010 2010 2009 2009 Cap Cap (%) (%) Emirates 1 1 Uae 943 AA- 6,734 14% 631 BBB 4,292 15% NDB Al Rajhi Saudi 2 4 922 AA 30,899 3% 507 AA 21,591 2% Bank Arabia Standard United 3 3 910 AAA- 51,466 2% 563 AA+ 16,820 3% Chartered Kingdom National 4 7 Bank of Uae 835 AA 8,228 10% 364 A 5,650 6% Abu Dhabi Bank 5 6 Israel 814 A 5,082 16% 414 BBB 2,567 16% Hapoalim Kuwait 6 2 Finance Kuwait 748 A+ 10,172 7% 763 A 12,530 6% House

7 5 Leumi Israel 738 A+ 6,106 12% 437 A+ 3,177 14% Israel 8 11 Discount Israel 520 A 1,975 26% 254 BBB 835 30% Bank

9 8 NBK Kuwait 511 AA 12,910 4% 296 A+ 15,267 2% Saudi 10 9 Samba 475 A 13,380 4% 289 A- 11,563 2% Arabia

* Market Capitalisation 2010 - 27 October 2009

Brand Value: US$14,911m Brand Value Growth: 29% Number of banks: 15

The African region contributed 2% to the total global brand value and has grown by 29% in 2010. The number of African banking brands in the global 500 has decreased by one to fifteen in 2010.

Barclay’s, with their multi-national African network, has the highest brand value in Africa, closely followed by the three South African banking giants ABSA, First National Bank and Standard Bank. Barclay’s has had a presence in Africa for over 100 years and is currently present in 10 African countries. Barclay’s is followed in second place by its majority-owned bank in South Africa, ABSA. ABSA has built up a successful brand that has for the past three years been voted the top banking brand and ‘Coolest Bank’ in South Africa. ABSA has continued to remain profitable and well capitalised despite adverse market conditions.

Within the top 20, the majority of the banks (35%) are domiciled in South Africa. South Africa’s financial industry has performed relatively well within the global financial crisis and has primarily felt the impact indirectly. The shakeup in Nigerian Banking seems to have had a negative effect on brand value with a number of Nigerian banks dropping out of the table.

65 © Brand Finance plc 2010 Regional Analysis

Brand Brand Brand Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile Value Rating Value Rating Market 2010 2009 Cap Market Cap 2010 2010 2009 2009 Cap Cap (%) (%) United 1 4 Barclays 2,064 AA 56,155 4% 1,051 A- 19,998 5% Kingdom South 2 3 ABSA 1,381 AA+ 11,662 12% 1,095 AA 7,236 15% Africa First South 3 1 National 1,379 AA+ 7,751 18% 1,297 AA 6,642 20% Africa Bank Standard South 4 2 1,294 AA+ 9,786 13% 1,172 AA 6,373 18% Bank Africa Goldman United 5 8 1,231 AAA+ 93,316 1% 663 AAA- 36,361 2% Sachs States United 6 10 Citi 992 A+ 70,105 1% 457 A 36,498 1% States Morgan United 7 9 956 A+ 45,931 2% 568 A+ 15,399 4% Stanley States South 8 5 Nedbank 951 AA- 7,918 12% 817 A+ 4,470 18% Africa Société 9 13 France 586 AA- 44,662 1% 254 A- 25,288 1% Générale South 10 14 Investec 488 AA- 5,505 9% 248 A- 3,102 8% Africa

* Market Capitalisation 2010 - 27 October 2009

Brand Value: US$35,409m Brand Value Growth: 52% Number of banks: 28

The Pacific region contributed 5% to the increase in brand value globally and has grown by 52% in 2010. The number of pacific banking brands in the global 500 has remained consistent with 2009 with 28 brands. This is a reflection of the sustained value in the region.

The top four pacific banks are all Australian domiciled. Australia has seven of the top ten banks in the region. This is a result of firstly, the size of Australia’s economy in the region and secondly, during the credit crunch the Australian economy faired a lot better than other international markets. The Australian banks seemed to avoid the toxic loans, and investments that largely impacted their international peers. Additionally, Australian banks have coped relatively well with the credit funding and capital challenges.

In line with the global banking economic recovery of 2009 Australia saw a similar upturn resulting in large increases in brand value. The increase in Australian brand values has received a significant boost from the strengthening of the Australian dollar over the past 12 months.

Despite Commonwealth Bank of Australia’s renewed focus on customer satisfaction, its heavy advertising on the ‘determined to be different’ platform, and its acquisition of BankWest it has been toppled by National Australia Bank as the most valuable Pacific bank brand in 2010. Westpac, which is pursuing a multi-brand strategy remains at number three in the table and can expect ongoing challenges from Commonwealth Bank of Australia and ANZ. ANZ remains in fourth place and has grown its brand value by 53% which has been influenced by its refreshed visual identity as it consolidates the brand internationally.

67 © Brand Finance plc 2010 Regional Analysis

Brand Brand Brand Brand Brand Brand Value / Rank Rank Market Value / Market Brand Domicile Value Rating Value Rating Market 2010 2009 Cap Market Cap 2010 2010 2009 2009 Cap Cap (%) (%) National 1 2 Australia Australia 3,368 A+ 37,072 9% 2,212 A+ 20,955 11% Bank Common- wealth 2 1 Australia 3,234 AA+ 59,573 5% 2,216 A- 14,782 15% Bank of Australia

3 3 Westpac Australia 3,206 AA+ 43,784 7% 1,892 A+ 23,229 8%

4 4 ANZ Australia 2,683 AA 44,054 6% 1,758 AA- 15,313 11% Standard United 5 5 2,158 AAA- 51,466 4% 1,520 AA+ 16,820 9% Chartered Kingdom United 6 9 Citi 2,093 A+ 70,105 3% 828 A 36,498 2% States St George 7 7 Australia 1,864 AA- 29,535 6% 1,069 AAA+ 131,577 1% Bank United 8 6 HSBC 1,817 AAA+ 193,794 1% 1,457 A+ 5,480 27% Kingdom

9 13 Macquarie Australia 1,239 AA 15,891 8% 607 AA- 8,271 7% Suncorp 10 8 Australia 1,030 A 8,179 13% 840 BBB 3,676 23% Metway

* Market Capitalisation 2010 - 27 October 2009

The Role of Intangible Assets and Brands

Understanding intangible asset values

The BrandFinance® Global Intangible Finance Tracker (GIFT™) is an extensive annual study of intangible asset values, covering the 58 leading stock markets of the world, more than 38,000 companies and 99% of globally listed market value.

The top line results for 2009 are as follows:

Global Enterprise Value 2009

The roller coaster ride of intangible asset values

The first decade of the 21st century saw a progressive rise in the value of intangible assets owned by companies quoted on global stock markets. The proportion of intangible assets as a proportion of global enterprise value rose to an aggregate of 62% by the end of 2007. In many instances (pharmaceuticals, software, fashion and luxury branded sectors) the percentage was even higher, in the 70-90% range.

However, the value investors attach to intangible assets is volatile, responding to the level of confidence in promised future revenues and profits. Economic shocks adversely affect investor sentiment about intangible asset returns, as the crash of 2008 demonstrated. In 2008 the intangible asset percentage of enterprise values fell to 39%. Fortunately by 2009 it had rebounded to 52% of total enterprise value.

Intangible asset values have dived twice in the last decade, once in 2002 in the aftermath of the dotcom bust, and once in 2008 when the banking crisis burst the asset bubble. This speculative bubble had been fuelled by strong economic

© Brand Finance plc 2010 © Brand Finance plc 2010 70 performance and by the availability of cheap be capitalised in balance sheets. Increasingly, money, both of which ran out in 2008. investors are asking whether it would be more helpful if accounts included an intrinsic valuation of However, the concerted action of global the business and its tangible and intangible assets governments to save the banking system, including each year to improve understanding of accounts the injection of US$14 trillion dollars of liquidity, and to avoid opportunistic take-overs. and the reduction of interest rates close to zero, allowed share prices, enterprise and asset values The recent takeover of Cadbury plc is a case to rebound dramatically in 2009. in point. Prior to the Kraft bid in autumn 2009 Cadbury shares traded at £4.50. The winning bid Global Enterprise Value 2001-2009 valued them at £8.50 but some analysts believe the true intrinsic value of Cadbury and its brands is closer to £10 a share.

Intangible asset value by country

The USA is by far the largest global economy with the largest share of intangible asset value in both percentage and absolute terms. However, the rising economies of India and China both display significant intangible asset values. This is a strong indication of the high prices investors are prepared to attach to intangible assets and future growth in major emerging markets. Global Enterprise Value 2001-2009 - % Top 10 countries by Enterprise Value 2009

As shown in the chart below, banks and financial After a roller coaster ride during the period 2007- services constitute the largest proportion of 2009 global enterprise and intangible asset values enterprise value across all sectors, followed by oil are now returning to pre crash levels. & gas companies and telecommunications. It will be seen that the largest proportion of intangible asset value is in undisclosed value. This is the Top 10 sectors by Enterprise Value -2009 value the markets attach to the assets owned by companies, but which is not reported in balance sheets because accounting standard setters believe it would be misleading. They fear it would be an invitation to creative accounting if companies were permitted to capitalize internally generated intangible assets on their balance sheets. This can cause serious problems for investors.

Only acquired intangible assets and residual goodwill arising from M&A transaction may

71 © Brand Finance plc 2010 Global Intangible Financial Tracker

Top 10 sectors by Enterprise Value -2009 - % The role of bank brands in driving enterprise value

Brands that stakeholders trust create value by shifting both the demand and supply curves. On the demand side they influence customer behaviour - leading to greater trial, improved frequency of use, increased loyalty and a willingness to pay a price premium. On the supply side, strong and trusted brands attract better employees, influence terms of trade, and even reduce the cost of capital.

An understanding of brand value - The Banking and Financial Services sector and its key drivers - is therefore important to a range of decision makers: The banking sector is by far the most valuable global sector representing total enterprise value • Brand managers (up through to CEO’s) need of nearly $8 trillion by the end of 2009. to understand how brands influence customer perceptions and behaviour in order to develop The following charts illustrate how enterprise and strategies that optimize market performance and intangible asset values attributed to banks have brand value. peaked, crashed and rebounded in the last 3 years. • Finance decision makers are faced Despite continued criticism by politicians, the with impairment risks and transfer pricing media and the public the value of banks and their considerations that require an understanding brands have recovered close to pre-crash values. of intangible asset values. They also play a role in protecting brand value by maintaining Global Enterprise Value - Banks & adequate levels of brand investment – in good Diversified Financial Services 2001-2009 and bad times. • Deal makers increasingly need to gauge the value potential of brands in assessing the merits of a transaction within the context of licensing arrangements and mergers & acquisitions.

The fact is that despite a storm of criticism directed at banks there are strong and valuable brands in the banking sector. Some remain under-valued and may be on the receiving end of unwanted bids, like Cadbury’s. This study is intended to report progress in the rebuilding of value and strength of these vitally important intangible assets.

Global Enterprise Value - Banks & Many banks have highly trusted and valuable Diversified Financial Services 2001-2009 - % brands. Not all banks are the same. Some may think that brands are dead in banking but this is emphatically not the case as HSBC, Santander and others show.

The methodology employed in this BrandFinance® Brand Finance uses the royalty relief methodology Banking 500 listing uses a discounted cash flow that determines the value of the brand in relation to the royalty rate that would be payable for its use (DCF) technique to discount estimated future were it owned by a third party. The royalty rate is royalties, at an appropriate discount rate, to arrive applied to future revenue to determine an earnings at a net present value (NPV) of the trademark and stream that is attributable to the brand. The brand associated intellectual property: the brand value. earnings stream is then discounted back to a net present value. The steps in this process are: The royalty relief approach is used for three reasons: • Obtain brand-specific financial and revenue it is favoured by tax authorities and the courts data. The revenue was then segmented into because it calculates brand values by reference to the following revenue streams: retail banking, documented third-party transactions; it can be done commercial banking, wholesale/investment based on publicly available financial information; banking, insurance, asset management and and it is compliant to the requirement under the credit cards. International Valuation Standards Committee (IVSC) to determine Fair Market Value of brands. • Model the market to identify market demand and the position of individual banks in the context of Brand Ratings all other market competitors. These are calculated using Brand Finance’s Three forecast periods were used: ßrandßeta® analysis, which benchmarks the - Estimated financial results for 2009 using strength, risk and future potential of a brand Institutional Brokers Estimate System (IBES) relative to its competitors on a scale ranging consensus forecast. from AAA to D. It is conceptually similar to - A five-year forecast period (2010-2014), a credit rating. based on three data sources (IBES, historic growth and GDP growth). The data used to calculate the ratings comes - Perpetuity growth, based on a combination from various sources including Bloomberg, of growth expectations (GDP and IBES). annual reports and Brand Finance research.

• Establish the royalty rate for each bank. Brand Ratings Definitions

This is done by: - Calculating brand strength – on a scale of AAA Extremely strong 0 to 100 – according to a number of attributes AA Very strong such as asset strength, emotional connection, A Strong market share and profitability, among others. - Determining the royalty rate for each of the BBB-B Average revenue streams mentioned in step 1. CCC-C Weak - Calculate future royalty income stream. DDD-D Failing • Calculate the discount rate specific to each bank, taking account of its size, geographical presence, reputation, gearing and brand rating (see below). Valuation Date

• Discount future royalty stream (explicit forecast All brand values in the report are for the end of the and perpetuity periods) to a net present value – year, 31st December 2009 ie: the brand value.

Royalty Relief Approach

© Brand Finance plc 2010 74 Brand Finance is an independent global business focused on advising strongly branded organisations on how to maximize value through the effective management of their brands and intangible assets.

Since it was founded in 1996, Brand Finance has performed thousands of branded business, brand and intangible asset valuations worth trillions of dollars.

Brand Finance’s services support a variety of business needs:

• Technical valuations for accounting, tax and legal purposes • Valuations in support of commercial transactions (acquisitions, divestitures, licensing and joint ventures) involving different forms of intellectual property • Valuations as part of a wider mandate to deliver value-based marketing strategy and tracking, thereby bridging the gap between marketing and finance.

Our clients include international brand owners, tax authorities, IP lawyers and investment banks. Our work is frequently peer-reviewed by the big four audit practices and our reports have also been accepted by various regulatory bodies, including the UK Takeover Panel.

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The Brand Finance team has a unique combination of talents. We employ experienced consultants and analysts with backgrounds in accounting, finance, economics, investment banking, trademark and brand management, strategy and market research.

We work for blue chip companies across a wide range of sectors. We customise our tools and approaches to meet specific client needs. Our flexible approach has resulted in longstanding client relationships.

We provide a robust way of addressing client needs, combining commercial acumen, creativity, marketing insights and sound corporate finance practice.

75 © Brand Finance plc 2010 About Brand Finance

Our Services

Valuation Analytics

Brand Finance plc Brand Audits Ltd Brand Equity Ltd Brand Economics Ltd Brand Assyst Ltd

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• Branded business • Trademark and IP • Qualitative brand • Qualitative brand • Intranet based valuations audits research research brand dashboards • Brand valuations • Visual identity • Quantitative brand • Quantitative brand and scorecards • Intangible asset audits research research development valuations • Licensing audits • Brand drivers • Brand drivers • Branded business, • Customer lifetime • Sustainability analysis analysis brand and IP valuations audits • Competitive • Competitive valuation software • Balance Sheet, • Marketing budgets benchmarking benchmarking • Data warehouse Tax, Litigation audits • Customer • Customer consulting and valuation reports • Brand risk audits segmentation segmentation support • M&A valuation studies studies • Facilitation and modelling • βrandβeta® analysis • βrandβeta® analysis training

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• Brand strategy • Visual Identity (VI) • Communications • Trade mark • Management of development change strategy strategy registration strategy BrandCos • Brand architecture • Project development • Trademark • Purchase and sale and portfolio management of • Focus on Nation, protection of brands strategy new VI launches Location and programmes • Brand and market • Market entry and transitions Origin branding • Licensing due diligence strategy • VI evaluation and • Consumer, Trade negotiation • IPOs and equity • New Product and assessment and Media research • Franchising raising Innovation strategy • VI cost • Executing negotiation • Venture Capital • Sustainability assessment integrated • Joint venture raising Finance strategy • VI vendor selection campaigns advice raising • Naming and brand and tendering • Media relationship creation strategy management

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© Brand Finance plc 2010 © Brand Finance plc 2010 76 ‘Intangible assets, most notably brands, are vital strategic and financial assets which marketers are increasingly being held accountable for managing and building.’

77 About Brand Finance

Valuation Analytics

We conduct valuation and analytics assignments Our analytical services help clients to better for branded enterprises and branded businesses. understand the drivers of business and brand We value brands, intangible assets and intellectual value. Understanding how value is created, where property in many jurisdictions for accounting, tax, it is created and the relationship between brand corporate finance and marketing purposes. We act on behalf of intellectual property owners, tax value and business value is a vital input to strategic authorities and work closely with lawyers, private decision making. By furthering knowledge of this equity firms, and investment banks. relationship, Brand Finance is able to help clients’ leverage brand value and ultimately maximise Our work is frequently peer-reviewed by shareholder value. independent audit practices and our approach has been accepted by regulatory bodies worldwide. Some of our key analytical services include: Reasons for Brand Valuation Financial Reporting: Brand Dashboards and Scorecards: We help companies improve brand performance Accounting standards in most developed markets management and reporting by integrating market allow for capitalisation of purchased intangible research, investment, market and financial metrics assets. The initial valuations and subsequent into a single insightful model to track performance impairment reviews generally require the opinion over time and against competitors and to uncover of an independent valuation expert. the most important drivers of overall brand and business value. Tax Planning: The growing importance of intangible assets has significant tax planning Competitor Benchmarking: We conduct implications. Brand Finance works for both fiscal a benchmarking study of the strength, risk and authorities and brand owners on transfer pricing future potential of a clients brand relative to its and capital gains tax issues. competitor set. This helps understanding the strengths and weaknesses of the client brand Dispute Resolution: We have helped clients compared with key competitor brands. protect the commercial value of their brands through a range of licensing and trademark Value Drivers Analysis: We help businesses disputes that have been settled both in and out understand the relationship between brand of court. We also provide litigation support work attributes and key value drivers in the business for various legal firms and IP companies. model. This is achieved by creating a framework for measuring brand equity and connecting it to Marketing & Brand Management: There is an value driving behaviour in each stakeholder group. increasing demand from investors and analysts for Resources can then be allocated and prioritised information on brand value and brand performance. based on the overall impact on financial value. Brand Finance advises clients on both the external disclosures and required brand metrics. Our Demand Forecasting: We provide clients with valuation services have assisted many companies a market demand forecasting framework for long to understand and improve the value of their term strategic planning. intangible assets. Marketing Mix Modelling: We help improve the Commercial Transactions: We help clients to efficiency of brand campaign planning and targeting determine the value of their intangible assets and by isolating and quantifying the impact of different enterprise value for mergers and acquisitions, marketing activities. The model guides the mix and negotiations, franchise and licensing and deal combination of future marketing activities structuring to ensure that they make informed decisions. Marketing ROI: We help clients improve decision- making by providing insights which assist with budget optimisation, resource allocation, brand performance and evaluation of marketing activities.

Strategy

We conduct market studies, market sizing, feasibility studies, brand audits and brand portfolio evaluation. Combining market intelligence, brand analytics, market research and financial assessment, we provide greater depth and insights into our clients’ strategies.

Some of our key Brand Strategy Advisory Services include:

Brand Strategy Evaluation: We help clients make disciplined choices about how to maximise economic value, by providing a framework for optimal resource allocation and strategy selection. This helps identify the value optimising allocation of marketing investment, provides a strategic overview of the risks and returns associated with each market segment

Strategic Optimisation: We help branded businesses increase their value. Using brand valuation techniques, we help clients determine the financial impact of different strategic brand options such as licensing, joint ventures, investment, divestment, brand architecture changes, entering or exiting new segments or markets and other transactions.

Brand Architecture and Portfolio review: We help companies evaluate different branding architecture scenarios. Using sensitivity analysis, this identifies potential addition or loss of economic value under alternative brand architecture options and enables informed decision making.

Market Entry and New Product Development: We work together with companies to develop successful market entry and new product strategies.

Naming and Visual Identity Management: We work together with clients to help develop research-based naming strategies that are aligned with the overall business objectives of the company. In addition, we help manage the entire visual identity process to help ensure that new and refreshed brand identities are implemented efficiently and effectively.

79 © Brand Finance plc 2010 About Brand Finance

Budget Determination: We help clients identify Financing & Securitisation: We help clients which products or services and brands create communicate the financial potential of the or destroy the most value. Clients can use this brand to inform and assist potential investors. to allocate resources and budgets across their Our independent reports provide reassurance marketing activities to yield the best returns. to leveraged finance / debt providers and have enabled clients to secure finance against their Communications Strategy: We help companies brand, intellectual property and intangible assets. develop effective results-oriented communication strategies. All communication strategies are driven Thought Leadership by market research with the aim of meeting clients key objectives including building goodwill across Every year Brand Finance produces Global Brand customer base; generating sales; creating and Studies, which reveal the most valuable brands reinforcing brand and professional corporate image; informing and creating positive perceptions and across specific sectors and countries. assisting in the introduction of new products Each report uses publicly available information to market. to calculate the worth of the most valuable brands within a range of sectors and countries. Transactions

Studies include: Our transaction support services help companies evaluate and mitigate risks, extract maximum BrandFinance® Banking 500 value in mergers and acquisitions as well as private BrandFinance® Global 500 equity investments. We also assist private equity BrandFinance® Global Intangible Financial Tracker (GIFT™) companies, venture capitalists, brand owners BrandFinance® Telecoms 500 and businesses identify and assess the value of Country and sector specific studies opportunities through brand due diligence and brand strategy option, including licensing. For further detail on these studies, please visit www.brandfinance.com. Some of our key Transaction Support Services include: Brand Finance Institute

Brand and Market Due Diligence: We help clients The Brand Finance Institute, is the education by valuing branded businesses, brands and other and training division of Brand Finance plc. The intangible assets for purchase or sale providing Institute runs forums on subjects including brand reassurance to the investment and management valuation, analysis and strategy. teams. In addition, we assist in securing finance against brands by using a mixture of financial, The Institute has expanded its global footprint, legal, marketing and commercial due diligence. holding forums in Australia, Croatia, Dubai, Finland, Malaysia, India, Singapore, Spain, Turkey and the UK. Brand Licensing and Franchising: We help maximise earnings and provide greater brand presence and knowledge by identifying the best For further details on forthcoming events, opportunities for licensing and franchising, both please visit www.brandfinanceforum.com. internally and externally. We also provide advice on best practice in licensing agreements.

Purchasing & Sales: We provide clients with an understanding of the financial potential of their intellectual property to help inform negotiation of rates and terms to strike the best deals. Our role also includes the identification of potential purchasers and execution of the sales process.

Brand Holding company A brand is a trademark and associated Intellectual A company controlling management and operations Property in another company or group of other companies ßrandßeta® Institutional Brokers Estimate System (IBES) Brand Finance’s proprietary method for adjusting A system that gathers and compiles the different a weighted average cost of capital (WACC) to arrive estimates made by stock analysts on the future at a specific discount rate for each brand (based earnings for most of the major publicly traded on its Brand Rating) companies Branded business Intangible asset The whole business trading under particular brands, An identifiable non-monetary asset without the associated goodwill and all the other tangible and physical substance intangible elements at work within the business Net present value (NPV) Brand rating The present value of an asset’s net cash flows A summary opinion, similar to a credit rating, (minus any initial investment) on a brand based on its strength as measured by Brand Finance’s ßrandßeta® analysis Market Capitalisation (Market Cap) Current price per share multiplied by the number Brand value of shares in issue The net present value of the estimated future cash flows attributable to the brand (see Perpetuity Growth Explanation of Methodology for more detail) Is the stable growth rate assumed to be effective in perpetuity following the last explicit forecast Compound Annual Growth Rate (CAGR) period The year-over-year growth rate of an investment over a specified period of time Royalty Rate The rate at which usage-based payments are made Discounted cash flow (DCF) by one party (the licensee) to another (the licensor) A method of evaluating an asset value by for ongoing use of the licensor’s asset, sometimes estimating future cash flows and taking into an intellectual property right consideration the time value of money and risk attributed to the future cash flows Royalty Relief Method Please see methodology section Discount rate The interest rate used in discounting future Tangible Net Assets cash flows Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and Disclosed Intangibles trademarks, less all liabilities and the par value of This represents the value of acquired intangible preferred stock assets as reported in a group’s financial statements Tangible Value Enterprise value The fair market value of the monetary and physical The combined market value of the equity and debt assets of a business of a business less cash and cash equivalents Undisclosed Intangible Value Fair market value (FMV) This represents the value of the intangible assets The price at which a business or assets would which are not separately reported in a group’s change hands between a willing buyer and a willing financial statements (e.g. Goodwill, patents) seller, neither of whom are under compulsion to buy or sell and both having reasonable knowledge Weighted average cost of capital (WACC) of all relevant facts at the time An average representing the expected return on all of a company’s securities. Each source of capital, Global Intangible Finance Tracker (GIFT) such as stocks, bonds, and other debt, is assigned The Brand Finance ‘Global Intangible Finance a required rate of return, and then these required Tracker is the most extensive report ever compiled rates of return are weighted in proportion to the into intangible assets and covers over 5,000 share each source of capital contributes to the companies in 25 countries company’s capital structure

81 © Brand Finance plc 2010

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. No independent verification or audit of such materials was undertaken. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate.

The BrandFinance® Banking 500 brand valuations follow IVSC guidance but will only comply with ISO 10668 Monetary Brand Valuation Standard when accompanied by detailed Legal and Behavioral analysis.

The conclusions expressed are the opinions of Brand Finance and are not intended to be warranties or guarantees that a particular value or projection can be achieved in any transaction. The opinions expressed in the report are not to be construed as providing investment advice. Brand Finance does not intend the report to be relied upon for technical reasons and excludes all liability to any organisation.

Brand Finance plc is the leading independent ® intangible asset valuation and brand strategy firm, For further information on BrandFinance ’s services and valuation experience, please contact helping companies to manage their brands more your local representative as listed below: intelligently for improved business results.

For further enquiries relating to this report, please contact: Name of Email address contact

Australia Tim Heberden [email protected] David Haigh Brazil Gilson Nunes [email protected] CEO Andrew Canada [email protected] Zimakas

[email protected] Croatia Borut Zemljic [email protected]

France James Park [email protected]

Marc Holland [email protected] Cloosterman Mike Rocha Hong Kong Rupert Purser [email protected] Managing Director India Unni Krishnan [email protected]

[email protected] Portugal Pedro Tavares [email protected] Alexander Russia [email protected] Eremenko Josephine Singapore [email protected] Wee Professor Malcolm McDonald South Africa Ollie Schmitz [email protected] Non-Executive Chairman Spain Victor Mirabet [email protected]

Ruchi [email protected] Sri Lanka [email protected] Gunewardene

Switzerland Mike Rocha [email protected]

Muhterem Turkey [email protected] Ilguner Andrew USA [email protected] Zimakas

For all other countries, please email: [email protected]

www.brandfinance.com

© Brand Finance plc 2010 © Brand Finance plc 2010 86 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

1 1 HSBC United Kingdom 28,472 AAA+ 193,794 15% 25,364 AAA+ 131,577 19%

2 2 Bank of America United States 26,047 AAA+ 111,754 23% 21,017 AAA 71,228 30%

3 4 Santander Spain 25,576 AAA+ 128,087 20% 10,840 AA 54,881 20%

4 3 Wells Fargo United States 21,916 AA 131,225 17% 14,508 AA 108,691 13%

5 7 Citi United States 14,362 A+ 70,105 20% 9,810 A 36,498 27%

6 8 BNP Paribas France 14,060 AA 67,144 21% 9,360 AA- 49,480 19%

7 17 Goldman Sachs United States 13,887 AAA+ 93,316 15% 6,753 AAA- 36,361 19%

8 10 Chase United States 13,400 AA 69,901 19% 8,747 A+ 52,571 17%

9 12 Bradesco Brazil 13,299 AAA- 56,583 24% 7,698 AA 29,794 26%

10 14 Barclays United Kingdom 13,134 AA 56,155 23% 7,583 A- 19,998 38%

American 11 6 United States 12,737 AA 42,043 30% 9,944 AA 25,866 38% Express

12 5 ICBC China 12,083 AA+ 225,368 5% 10,031 A+ 186,089 5%

China 13 9 China 12,076 AA+ 208,117 6% 9,024 AA 127,443 7% Construction Bank

14 11 JP Morgan United States 11,732 AA- 102,425 11% 8,072 AA- 48,571 17%

15 26 Sberbank Russia 11,729 AA+ 51,108 23% 4,531 AA- 19,616 23%

Société 16 20 France 11,580 AA- 44,662 26% 5,852 A- 25,288 23% Générale

17 19 BBVA Spain 10,727 AA- 69,134 16% 6,008 A+ 39,039 15%

18 18 Deutsche Bank Germany 9,862 AA- 43,273 23% 6,703 AA- 19,781 34%

19 16 Bank of China China 9,615 AA 149,395 6% 7,053 AA 107,672 7%

20 13 Credit Suisse Switzerland 8,430 AA 50,468 17% 7,668 AA+ 32,484 24%

21 31 UniCredit Italy 8,342 A+ 44,681 19% 3,103 BBB 15,389 20%

22 15 UBS Switzer-land 8,261 AA- 62,240 13% 7,568 AA- 37,889 20%

23 25 Morgan Stanley United States 7,907 A+ 45,931 17% 4,775 A+ 15,399 31%

Standard 24 24 United Kingdom 7,332 AAA- 51,466 14% 4,780 AA+ 16,820 28% Chartered

25 22 Banco Itaú Brazil 6,911 AAA- 58,588 12% 5,593 AA+ 32,230 17%

*Market Capitalisation 2010 - 27 October 2009

87 © Brand Finance plc 2010 Top 500 Most Valuable Banking Brands

26 36 Banco do Brasil Brazil 6,662 AA+ 43,135 15% 2,864 AA- 15,804 18%

27 23 MUFG Japan 6,393 A+ 56,607 11% 5,445 A+ 59,333 9%

Agricultural 28 n/a China 6,032 A+ n/a n/a n/a n/a n/a n/a Bank of China

29 41 Rabobank Netherlands 5,627 AA+ n/a n/a 2,624 A n/a n/a

30 21 Intesa Sanpaolo Italy 5,506 A+ 41,369 13% 5,760 A 39,246 15%

31 30 TD Canada 5,179 AA+ 50,040 10% 3,257 AA- 27,598 12%

32 28 RBC Canada 5,170 AA 71,697 7% 4,370 AA 42,529 10%

33 35 VISA United States 5,037 AAA- 55,159 9% 2,875 AA+ 44,124 7%

34 27 DZ BANK Germany 4,953 A n/a n/a 4,475 A n/a n/a

35 38 Crédit Agricole France 4,617 A+ 21,076 22% 2,743 A+ 10,784 25%

State Bank of 36 70 India 4,551 AA+ 29,809 15% 1,448 AA 9,834 15% India

37 43 Nordea Sweden 4,509 AA 43,057 10% 2,528 A 19,695 13%

National 38 39 Australia 4,073 A+ 37,072 11% 2,673 A- 14,782 18% Australia Bank

39 33 U.S. Bank United States 3,777 AA 45,984 8% 2,933 AA- 46,426 6%

40 61 Commerzbank Germany 3,521 A+ 11,066 32% 1,738 A+ 5,431 32%

Commonwealth 41 45 Bank of Australia 3,475 AA+ 59,573 6% 2,381 A+ 23,229 10% Australia

42 29 SMFG Japan 3,462 A 33,857 10% 3,428 A 27,941 12%

43 60 PNC United States 3,383 AA- 23,236 15% 1,752 A+ 18,246 10%

44 53 Westpac Australia 3,280 AA+ 54,370 6% 1,936 A+ 20,955 9%

Bank of 45 47 China 3,269 AA 64,383 5% 2,297 AA- 33,058 7% Communications

46 57 ERSTE Austria 3,229 AA- 13,405 24% n/a BBB 7,356 n/a

47 58 "la Caixa" Spain 3,189 AA n/a n/a 1,778 A- n/a n/a

48 50 MasterCard United States 3,186 AA+ 28,521 11% 2,056 AA+ 18,812 11%

Groupe Banque 49 51 France 2,998 A n/a n/a 2,013 BBB n/a n/a Populaire Groupe Caisse 50 44 France 2,996 A- n/a n/a 2,446 BBB n/a n/a d'Epargne

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 88 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

51 37 Crédit mutuel France 2,955 A- n/a n/a 2,789 BBB n/a n/a

52 56 ANZ Australia 2,873 AA 44,054 7% 1,883 AA- 15,313 12%

53 64 KBC Belgium 2,864 BBB 15,912 18% 1,658 BB 10,529 16%

Royal Bank of 54 42 United Kingdom 2,838 A- 20,520 14% 2,584 BB 7,639 34% Scotland

55 71 Danske Bank Denmark 2,835 A+ 17,014 17% 1,412 BB 8,460 17%

Bank of 56 54 Canada 2,767 A+ 26,076 11% 1,930 A+ 14,389 13% Montreal

57 34 Capital One United States 2,758 A 17,885 15% 2,913 A+ 13,559 21%

58 63 Merrill Lynch United States 2,694 A+ 18,193 15% 1,682 BBB 19,062 9%

59 59 Natixis France 2,615 AA- 17,513 15% 1,753 AA- 5,998 29%

60 52 State Street United States 2,598 AA- 21,483 12% 1,953 A 17,559 11%

61 40 Lloyds TSB United Kingdom 2,595 A 11,567 22% 2,646 AA- 8,710 30%

62 46 Scotiabank Canada 2,579 A 42,689 6% 2,321 A 26,678 9%

63 32 Mizuho Japan 2,508 A+ 28,205 9% 3,065 A 28,279 11%

The Bank of 64 49 New York United States 2,477 A+ 33,306 7% 2,115 A+ 34,381 6% Mellon

65 n/a ING Netherlands 2,454 A- 6,860 36% n/a n/a n/a n/a

66 158 HVB Group Italy 2,434 A 13,937 17% 586 BBB 3,078 19%

National Bank of 67 84 Greece 2,314 AA- 22,240 10% 1,244 B 9,372 13% Greece

68 55 CIBC Canada 2,255 A+ 22,201 10% 1,891 A+ 14,051 13%

China 69 74 China 2,212 AA- 49,803 4% 1,362 A- 25,992 5% Merchants Bank

70 110 ICICI Bank India 2,164 AA- 19,807 11% 939 A+ 7,893 12%

71 66 BB&T United States 2,056 AA 17,472 12% 1,546 A+ 16,370 9%

72 n/a Cetelem France 2,048 A+ 12,123 17% n/a n/a n/a n/a

73 93 SEB Sweden 2,039 AA- 13,216 15% 1,125 A 6,048 19%

74 91 Blackstone United States 1,997 A+ 15,817 13% 1,155 A+ 6,897 17%

75 131 DnB NOR Norway 1,964 A+ 16,537 12% 786 BBB 5,303 15%

*Market Capitalisation 2010 - 27 October 2009

89 © Brand Finance plc 2010 Top 500 Most Valuable Banking Brands

Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%) Shanghai Pudong 76 114 China 1,962 AA- 28,431 7% 918 AA- 10,711 9% Development Bank Franklin 77 113 Templeton United States 1,908 AA- 24,760 8% 922 A 13,967 7% Investments

78 101 China CITIC Bank China 1,866 A+ 33,904 6% 1,043 A- 20,260 5%

79 98 St George Bank Australia 1,864 AA- 18,947 10% 1,069 AA- 8,271 13%

80 68 Unibanco Brazil 1,859 A+ 25,109 7% 1,520 A 7,714 20%

81 116 Macquarie Australia 1,854 AA 15,891 12% 908 A+ 5,480 17%

82 78 Raiffeisen Bank Austria 1,851 A 9,729 19% 1,303 BBB 4,376 30%

83 76 VTB Russia 1,818 A 23,222 8% 1,329 A 7,934 17%

84 102 Nomura Japan 1,767 A- 25,132 7% 1,014 A+ 14,005 7%

85 80 Halifax United Kingdom 1,738 BB 8,714 20% 1,299 A- 3,947 33%

86 62 SunTrust United States 1,724 A+ 9,539 18% 1,721 AA- 10,715 16%

LCL (Credit 87 90 France 1,718 A 9,835 17% 1,161 A 5,033 23% Lyonnais)

88 134 Criteria CaixaCorp Spain 1,692 AA 16,827 10% 782 BBB 11,530 7%

89 100 Discover United States 1,690 A- 8,055 21% 1,043 B 4,900 21%

90 69 Dexia Belgium 1,679 A+ 15,590 11% 1,448 A 7,709 19%

91 86 Isbank Turkey 1,662 AA- 12,704 13% 1,208 A 7,036 17%

92 67 JPMorganChase United States 1,607 AA 172,325 1% 1,538 AA- 114,285 1%

93 n/a BlackRock United States 1,580 AA 29,722 5% n/a n/a n/a n/a

Bank of China 94 81 Hong Kong 1,550 A+ 24,528 6% 1,290 A 11,076 12% (Hong Kong)

95 99 Western Union United States 1,542 AA- 13,063 12% 1,053 AA- 9,374 11%

96 119 CLSA France 1,523 A 7,962 19% 891 A- 4,074 22%

97 73 DBS Singapore 1,520 AA 21,114 7% 1,362 AA 12,972 11%

98 94 Hang Seng Bank Hong Kong 1,507 AA- 27,382 6% 1,104 A 24,061 5%

99 85 CIC France 1,501 A 6,565 23% 1,226 A 5,244 23%

Ameriprise 100 96 United States 1,498 A 9,208 16% 1,082 A 3,858 28% Financial

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 90 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%) Caixa Geral de 101 79 Portugal 1,480 A+ n/a n/a 1,300 BB n/a n/a Depósitos

102 121 Calyon France 1,478 A 7,962 19% 868 A- 4,074 21%

103 120 Swedbank Sweden 1,478 A+ 7,815 19% 873 BBB 3,850 23%

104 117 Postbank Germany 1,475 A 7,535 20% 905 BB 3,353 27%

105 82 Standard Bank South Africa 1,416 AA+ 9,786 14% 1,282 AA 6,373 20%

106 n/a BNL France 1,413n/aA+ 8,393 17% n/a n/a n/a n/a First National 107 72 South Africa 1,409 AA+ 7,751 18% 1,369 AA 6,642 21% Bank

108 83 NatWest United Kingdom 1,391 A- 9,789 14% 1,263 A- 3,644 35%

109 95 ABSA South Africa 1,390 AA+ 11,662 12% 1,102 AA 7,236 15%

110 105 Eurobank EFG Greece 1,388 A 8,930 16% 997 BBB 4,298 23%

111 157 Banamex United States 1,356 A+ 13,760 10% 593 A 2,017 29%

112 87 Regions United States 1,334 BBB 6,000 22% 1,191 A- 6,920 17%

113 104 Banco Popolare Italy 1,330 A 5,926 22% 998 A 5,912 17%

114 109 Schwab United States 1,303 AA- 20,535 6% 951 A- 20,909 5%

115 115 Akbank Turkey 1,242 AA+ 17,554 7% 910 AA 7,975 11%

116 124 Yapı Kredi Turkey 1,226 AA 9,767 13% 860 A+ 5,308 16%

117 172 Industrial Bank China 1,221 A- 27,637 4% 471 BB 10,572 4%

Morgan Stanley 118 n/a United States 1,206 A- 9,762 12% n/a n/a n/a n/a Smith Barney

119 127 CMBC China 1,204 A+ 21,801 6% 829 A- 11,383 7%

Grupo Banco 120 139 Spain 1,187 AA- 12,621 9% 723 A- 9,887 7% Popular Bank of 121 97 United Kingdom 1,183 BB 7,176 16% 1,075 BBB 3,250 33% Scotland

122 n/a Seng Heng Bank China 1,175 A 30,150 4% n/a n/a n/a n/a

123 137 Garanti Turkey 1,164 AA+ 17,273 7% 745 A+ 6,090 12%

Scottish 124 88 United Kingdom 1,151 A 5,073 23% 1,189 AA- 3,820 31% Widows

125 122 Maybank Malaysia 1,135 A+ 14,234 8% 863 AA- 7,019 12%

*Market Capitalisation 2010 - 27 October 2009

91 © Brand Finance plc 2010 Top 500 Most Valuable Banking Brands

126 145 Alpha Bank Greece 1,132 A 8,031 14% 656 BB 4,216 16%

Svenska 127 142 Sweden 1,105 A 17,230 6% 684 A- 10,510 7% Handelsbanken

128 103 Caja Madrid Spain 1,102 A+ n/a n/a 1,012 BBB n/a n/a

129 149 PKO Bank Polski Poland 1,062 AA- 12,361 9% 638 BBB 11,255 6%

Suncorp 130 126 Australia 1,030 A 8,179 13% 840 BBB 3,676 23% Metway

131 136 Northern Trust United States 999 AA- 12,512 8% 756 AA- 9,905 8%

132 107 Keycorp United States 984 A 5,183 19% 982 A+ 4,460 22%

133 125 Nedbank South Africa 983 AA- 7,918 12% 845 A+ 4,470 19%

134 75 Resona Bank Japan 982 A+ 13,358 7% 1,338 A 15,489 9%

135 48 Shinhan Bank South Korea 980 A+ n/a n/a 2,226 A- n/a n/a

136 164 Bank Pekao SA Poland 978 A+ 15,005 7% 525 BBB 10,397 5%

137 155 SNS REAAL Netherlands 974 A 2,124 46% 600 BBB 1,800 33%

138 173 Investec South Africa 972 AA- 5,505 18% 468 A- 3,102 15%

139 129 UBI Banca Italy 958 A- 9,601 10% 798 BB 9,467 8%

140 112 Fifth Third Bank United States 952 A 7,241 13% 923 A 5,359 17%

141 153 HDFC Bank India 951 AA- 15,213 6% 611 A- 7,785 8%

142 n/a Emirates NDB UAE 943 AA- 6,734 14% n/a n/a n/a n/a

143 n/a BancWest France 940 A+ 5,595 17% n/a n/a n/a n/a

144 146 CITIC Securities China 931 AA- 26,388 4% 650 A+ 19,641 3%

145 106 AIB Ireland 930 BBB 2,742 34% 985 BBB 3,151 31%

United 146 138 Singapore 929 AA- 18,958 5% 724 A+ 12,919 6% Overseas Bank

147 160 NYSE Euronext United States 923 AA 7,207 13% 549 A 6,249 9%

148 183 Bank of Cyprus Cyprus 922 A+ 5,015 18% 426 BBB 2,261 19%

149 165 Al Rajhi Bank Saudi Arabia 922 AA 30,899 3% 507 AA 21,591 2%

Banco Popolare 150 184 Italy 890 A 3,644 24% 419 BB 3,221 13% Emilia Romagna

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 92 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%) Cheltenham & 151 130 United Kingdom 880 A+ 3,653 24% 792 A+ 2,750 29% Gloucester

152 169 CIMB Malaysia 872 A+ 13,471 6% 483 A 5,986 8%

Monte dei 153 108 Italy 852 BBB 13,399 6% 956 B 11,605 8% Paschi di Siena Banco 154 140 Comercial Portugal 850 A 6,775 13% 694 A- 4,750 15% Português

155 197 Raymond James United States 838 AA- 2,999 28% 374 BB 2,041 18%

National Bank of 156 199 Uae 835 AA 8,228 10% 364 A 5,650 6% Abu Dhabi

157 167 Leumi Israel 830 A+ 6,106 14% 486 A+ 3,177 15%

158 179 Bank Hapoalim Israel 815 A 5,082 16% 440 BBB 2,567 17%

159 150 CME United States 807 AA 20,995 4% 624 A+ 14,185 4%

Russian 160 n/a Russia 793 A+ n/a n/a n/a n/a n/a n/a Standard Bank

161 200 NORD/LB Germany 789n/aA n/a n/a 360 A- n/a n/a

162 156 Banesto Spain 780 A+ 9,040 9% 599 A 7,601 8%

163 159 OCBC Bank Singa-pore 770 AA- 17,468 4% 571 A 10,354 6%

164 178 OTP Bank Hungary 762 A 8,197 9% 441 BBB 3,843 11%

Kuwait Finance 165 135 Kuwait 748 A+ 10,172 7% 763 A 12,530 6% House

166 163 Banco Sabadell Spain 744 AA- 8,387 9% 531 A+ 8,030 7%

National Bank of 167 148 Canada 741 A 8,556 9% 643 BBB 5,048 13% Canada

168 118 MLC Australia 734 A 15,299 5% 904 A- 6,100 15%

169 223 BES Portugal 727 A+ 8,775 8% 288 B 3,767 8%

170 174 M&T Bank United States 718 A+ 7,931 9% 465 A- 7,179 6%

171 132 Invesco United States 714 AA- 8,858 8% 784 A- 4,766 16%

172 168 Piraeus Bank Greece 714 A 5,947 12% 485 B 3,262 15%

173 226 Halkbank Turkey 714 AA- 7,941 9% 278 BBB 3,227 9%

Punjab National 174 192 India 713 A+ 5,611 13% 384 A- 2,853 13% Bank

175 n/a Taunus Corp Germany 709 A+ 2,719 26% n/a n/a n/a n/a

*Market Capitalisation 2010 - 27 October 2009

93 © Brand Finance plc 2010 Top 500 Most Valuable Banking Brands

176 154 Citizens United Kingdom 706 A 4,895 14% 606 A- 1,822 33%

177 204 NBK Kuwait 685 AA 12,910 5% 344 A+ 15,267 2%

TD 178 218 United States 674 AA- 11,304 6% 301 A- 7,756 4% AMERITRADE

179 189 Public Bank Malaysia 673 AA- 11,115 6% 398 A- 8,253 5%

180 n/a BRD Romania 667 A+ 2,978 22% n/a n/a n/a n/a

181 143 Julius Baer Switzerland 659 AA- 8,284 8% 665 A+ 6,750 10%

182 217 Bank Moskvy Russia 653 A 3,722 18% 306 BBB n/a n/a

183 181 Mediobanca Italy 645 A+ 11,370 6% 428 A- 8,577 5%

184 n/a Clariden Leu Switzerland 644 A 11,684 6% n/a n/a n/a n/a

185 238 Eurohypo Germany 641 A 1,953 33% 258 A- 958 27%

Banca Popolare 186 213 Italy 641 A- 3,282 20% 321 B 2,156 15% di Milano Shenzhen 187 171 Development China 640 A- 10,003 6% 476 BBB 4,302 11% Bank

188 n/a IGM Financial Canada 632 AA- 9,881 6% n/a n/a n/a n/a

189 170 Banorte Mexico 631 A 6,707 9% 481 A 3,128 15%

190 177 Wüstenrot & Germany 629 BBB 2,111 30% 458 BB 1,507 30%

191 261 Credicorp Peru 624 A+ 6,861 9% 226 BBB 3,405 7%

Industrial Bank 192 182 South Korea 624 A 6,856 9% 428 B 1,858 23% of Korea

193 161 Bank of Ireland Ireland 605 A- 3,072 20% 542 BB 1,837 29%

194 254 Ulster Bank United Kingdom 604 A+ 1,883 32% 239 A- 701 34%

195 228 Bank of India India 602 A+ 4,644 13% 273 BBB 2,567 11%

196 260 Bank of Baroda India 601 A 3,765 16% 229 A 1,867 12%

197 n/a KB Bank France 597 A 2,686 22% n/a n/a n/a n/a

Colonial First 198 216 Australia 591 AA- 11,605 5% 307 A- 4,525 7% State

199 176 Sumitomo Trust Japan 590 A+ 9,127 6% 459 A- 7,318 6%

200 221 VakifBank Turkey 584 AA- 6,520 9% 294 BBB 1,908 15%

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 94 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

201 298 Bancolombia Colombia 578 A+ 7,976 7% 175 BB 3,977 4%

202 274 Banco de Chile Chile 574 A+ 6,686 9% 196 A 4,022 5%

203 202 Hua Xia Bank China 572 A 8,264 7% 357 BBB 5,641 6%

204 123 ORIX Japan 568 A 7,228 8% 862 A 5,507 16%

205 151 Credit Saison Japan 566 A 2,125 27% 623 A- 2,374 26%

206 n/a Firstplus United Kingdom 565 A 2,220 25% n/a n/a n/a n/a

207 141 Daiwa Japan 560 A 9,071 6% 686 A+ 6,961 10%

National Bank of 208 198 Australia 553 A+ 10,334 5% 374 A 3,592 10% New Zealand

209 n/a T. Rowe Price United States 546 A+ 13,418 4% n/a n/a n/a n/a

210 259 QNB Qatar 545 AA 13,165 4% 231 A 9,255 2%

211 215 Komer_ní banka Czech 530 A 7,826 7% 310 AA- 5,078 6%

212 n/a Egg United States 530 A- 3,235 16% n/a n/a n/a n/a 213 251 Canara Bank India 525n/aA 2,967 18% 243 BBB 1,363 18% 214 n/a ZKB Switzerland 525 A n/a n/a n/a n/a n/a n/a

Israel Discount 215 242 Israel 520 A 1,975 26% 254 BBB 835 30% Bank

216 89 Dresdner Bank Germany 518 A n/a n/a 1,172 A n/a n/a

217 271 First Gulf Bank Uae 517 AA 7,319 7% 202 A- 3,287 6%

218 249 Deutsche Börse Germany 512 A+ 17,265 3% 244 A- 14,043 2%

219 111 KEB South Korea 509 A 7,807 7% 933 BBB 3,119 30%

220 144 Shinsei Bank Japan 508 A+ 2,604 20% 661 BBB 3,173 21%

221 186 Legg Mason United States 491 A+ 4,966 10% 412 BBB 2,484 17%

222 196 Bank of Beijing China 482 A+ 16,432 3% 375 A- 7,669 5%

223 230 ATEbank Greece 480 A 2,464 19% 268 BB 1,774 15%

224 220 Anglo Irish Bank Ireland 477 BBB n/a n/a 295 BBB 911 32%

225 222 samba Saudi Arabia 475 A 13,380 4% 289 A- 11,563 2%

*Market Capitalisation 2010 - 27 October 2009

95 © Brand Finance plc 2010 Top 500 Most Valuable Banking Brands

226 267 Mandiri Indonesia 473 A 10,111 5% 210 B 2,550 8%

Österreichische 227 n/a Austria 465 A- 3,770 12% n/a n/a n/a n/a Volksbanken Marfin Popular 228 191 Cyprus 462 A 3,771 12% 387 BBB 2,183 18% Bank

229 224 riyad bank Saudi Arabia 461 A+ 11,720 4% 286 A 8,317 3%

230 270 BRI Indonesia 455 AA- 9,572 5% 204 A- 3,402 6%

231 n/a BIIS Italy 453 A 3,819 12% n/a n/a n/a n/a

232 232 Nossa Caixa Brazil 440 A 3,653 12% 265 A- 2,995 9%

233 275 Bankinter Spain 439 A+ 5,168 9% 195 B 3,594 5%

234 188 Comerica United States 432 A 4,403 10% 403 A 3,202 13%

E*TRADE 235 460 FINANCIAL United States 431 A+ 2,869 15% 91 BB 726 13% Corp

236 207 Helaba Germany 430 A n/a n/a 334 BBB n/a n/a

237 n/a MDM Bank Russia 429 A n/a n/a n/a n/a n/a n/a

238 n/a Unicaja Spain 429 A+ n/a n/a n/a n/a n/a n/a

239 269 Axix Bank India 428 A+ 8,159 5% 205 BBB 2,935 7%

240 246 Bangkok Bank Thailand 425 A+ 6,595 6% 249 A- 3,556 7%

241 133 DekaBank Germany 423 A n/a n/a 783 A- n/a n/a

242 252 SCB Thailand 413 A+ 8,371 5% 243 A- 3,364 7%

243 233 Sallie Mae United States 413 A+ 4,924 8% 263 A- 4,411 6%

244 162 Samsung Card South Korea 412 A 5,274 8% 538 BBB 2,919 18%

245 244 Kasikorn Thailand 406 A+ 5,924 7% 252 A- 2,837 9%

246 243 SABB Saudi Arabia 400 A+ 10,550 4% 252 A 7,837 3%

247 212 NASDAQ OMX United States 398 AA+ 3,791 10% 324 A 4,316 8%

248 264 ADCB Uae 394 A+ 2,750 14% 219 A 3,208 7%

249 185 Caixa Catalunya Spain 394 A- n/a n/a 419 B n/a n/a

Shinhan 250 n/a South Korea 393 AA- 19,209 2% n/a n/a n/a n/a Financial

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 96 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

251 210 Banca Carige Italy 390 A- 5,377 7% 327 B 4,297 8%

Zions 252 211 United States 389 A 1,935 20% 325 A- 3,592 9% Bancorporation

253 305 BPI Portugal 388 A 3,095 13% 170 B 1,711 10%

254 342 BCA Indonesia 383 AA- 12,153 3% 141 A- 5,524 3%

Hudson City 255 250 United States 383 AA 7,020 5% 243 A 8,543 3% Savings Bank

256 n/a BBK Spain 381 A n/a n/a n/a n/a n/a n/a

257 301 ICAP United Kingdom 381 A 4,547 8% 173 BB 2,811 6%

258 337 Arab Bank Jordan 379 A+ 10,382 4% 145 A- 9,918 1%

259 n/a Nykredit Denmark 377 A n/a n/a n/a n/a n/a n/a

260 n/a Caixanova Spain 373 A n/a n/a n/a n/a n/a n/a 261 n/a EurizonVita Italy 373n/aA 3,146 12% n/a n/a n/a n/a 262 214 Chiba Bank Japan 372 A+ 5,659 7% 314 BBB 4,194 7%

263 340 Pohjola Bank Finland 371 AA- 3,590 10% 143 BBB 2,639 5%

264 237 FFG Japan 369 A 3,185 12% 258 BB 2,648 10%

265 263 Caixa Galicia Spain 364 A n/a n/a 220 BBB n/a n/a

266 241 iberCaja Spain 364 A n/a n/a 255 BBB n/a n/a

267 n/a LLB Liechtenstein 362 AA- 2,084 17% n/a n/a n/a n/a

AEON Credit 268 208 Japan 359 A- 1,556 23% 330 BBB 1,832 18% Service

269 255 anb Saudi Arabia 356 A+ 8,233 4% 238 A- 5,255 5%

270 257 First Horizon United States 354 A 2,692 13% 234 BB 2,054 11%

271 n/a Lazard Bermuda 348 A+ 4,753 7% n/a n/a n/a n/a

272 278 Schroders United Kingdom 348 AA 5,223 7% 190 A 3,362 6%

Sparkasse 273 n/a Germany 347 A n/a n/a n/a n/a n/a n/a KölnBonn Union Bank of 274 351 India 340 A+ 2,758 12% 137 BB 1,466 9% India

275 272 ESFG Luxem-bourg 339 A- 1,776 19% 197 BB 749 26%

*Market Capitalisation 2010 - 27 October 2009

Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%) Bank Zachodni 276 281 Poland 338 A 4,206 8% 188 A- 2,440 8% WBK Banque Saudi 277 284 Saudi Arabia 334 A+ 8,755 4% 187 A- 6,927 3% Fransi Bank of 278 287 Thailand 332 A+ 3,452 10% 185 BBB 1,577 12% Ayudhya

279 195 Mashreq Uae 330 A+ 3,968 8% 376 A- n/a n/a

280 325 TEB Turkey 330 AA- 1,648 20% 155 A 539 29%

Hokuhoku 281 247 Japan 328 A 2,957 11% 247 BB 2,799 9% Financial Group

282 n/a Ecobank Nigeria 326 A 1,077 30% n/a n/a n/a n/a

283 203 Sovereign Bank Spain 324 AA 2,119 15% 357 BBB 1,587 23%

284 353 Ahli United Bank Bahrain 323 AA 2,903 11% 135 BBB 3,878 3%

United Bank for 285 451 Nigeria 322 A 1,745 18% 93 BBB 2,309 4% Africa

286 354 RHB Malaysia 322 A- 3,339 10% 135 B 2,263 6%

287 280 kotak India 321 A 5,632 6% 188 A- 2,388 8%

288 338 Waddell & Reed United States 321 AA- 2,600 12% 144 A- 1,116 13%

289 322 BRE Bank Poland 320 A- 2,866 11% 158 B 2,215 7%

290 209 BEA Hong Kong 320 A+ 6,701 5% 327 A- 3,476 9%

Global 291 229 United States 318 A- 4,018 8% 269 BB 2,828 10% Payments Banca Popolare 292 279 Italy 317 A- n/a n/a 189 B n/a n/a di Vicenza Dubai Islamic 293 240 Uae 315 AA- 3,083 10% 256 A- 2,317 11% Bank

294 283 Credem Italy 313 A- 2,168 14% 187 B 1,735 11%

295 311 Krung Thai Bank Thailand 311 A 3,043 10% 167 BBB 1,016 16%

Haitong 296 435 China 311 A+ 17,143 2% 98 BBB 11,012 1% Securities

297 364 GETIN Poland 307 A- 2,101 15% 130 BB 1,232 11%

Hypo Real 298 n/a Germany 307 A- 1,416 22% n/a n/a n/a n/a Estate

299 341 Jyske Bank Denmark 306 A+ 2,131 14% 142 BBB 1,221 12%

300 245 M&I United States 304 BBB 2,812 11% 250 BB 3,727 7%

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 98 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%) Stifel Financial 301 376 United States 303 A 1,598 19% 125 BB 1,100 11% Corp Credito 302 289 Italy 302 A 1,935 16% 182 BBB 1,449 13% Valtellinese

303 304 Citi Handlowy Poland 300 A- 2,896 10% 172 BBB 2,050 8%

Interactive 304 268 United States 299 A 6,504 5% 207 BB 7,127 3% Brokers IDBI Bank 305 418 India 299 A+ 1,876 16% 103 A- 880 12% Limited Provident 306 399 United Kingdom 299 A+ 2,075 14% 113 BBB 1,677 7% Financial Bank of 307 225 Japan 298 AA- 6,881 4% 281 BBB 6,694 4% Yokohama

308 357 ING Bank Poland 298 A 3,050 10% 133 BB 1,875 7%

309 n/a Cajamurcia Spain 296 A n/a n/a n/a n/a n/a n/a

310 312 Finansbank Turkey 296 A+ 7,372 4% 166 A 4,598 4%

311 307 Banco Estado Brazil 284 A 2,831 10% 169 BBB 1,214 14%

Huntington 312 193 United States 283 BBB 2,857 10% 379 BBB 2,841 13% Bancshares

313 294 ASB Bank Australia 281 AA- 5,416 5% 177 BBB 2,112 8%

314 227 Shizuoka Bank Japan 278 A+ 6,972 4% 275 BBB 6,912 4%

315 308 Ca Ile de France France 277 A+ 2,482 11% 169 A- 1,740 10%

316 335 Mizrahi Tefahot Israel 277 A 1,887 15% 147 A 1,099 13%

317 318 Mercantil Venezuela 274 A+ 917 30% 161 A- 930 17%

318 285 TCF United States 271 AA- 1,617 17% 186 A- 2,124 9%

319 236 Promina Australia 270 A- 2,583 10% 260 BBB 1,161 22%

Attijariwafa 320 471 Morocco 269 A 6,538 4% 86 B 5,802 1% Bank

321 333 Eaton Vance United States 267 A+ 3,484 8% 149 BBB 2,039 7%

322 266 African Bank South Africa 266 A 3,117 9% 214 A 2,262 9%

EFG 323 253 Switzerland 261 A 2,424 11% 242 A 2,154 11% International

324 344 AmBank Malaysia 260 A 4,165 6% 140 B 1,559 9%

325 324 Bci Chile 255 A 3,036 8% 157 A 1,703 9%

*Market Capitalisation 2010 - 27 October 2009

326 n/a Depfa Bank Germany 255 A- 1,106 23% n/a n/a n/a n/a

327 332 Janus United States 252 AA 2,552 10% 149 A- 1,261 12%

Deutsche 328 321 Apotheker- und Germany 249 A n/a n/a 158 BB n/a n/a Ärztebank

329 302 NYCB United States 247 A 3,815 6% 173 A- 4,433 4%

330 382 Zagrebacka banka Croatia 245 A+ 3,457 7% 121 BB 2,094 6%

331 292 Federated United States 241 A 2,827 9% 180 BB 1,935 9%

332 476 Qatar Islamic Bank Qatar 241 A+ 4,753 5% 84 A- 3,758 2%

333 303 AWD Germany 240 A- 1,802 13% 172 BB 1,369 13%

Indian Overseas 334 371 India 236 A 1,371 17% 127 B 705 18% Bank Banque Privée 335 389 Edmond de Switzerland 235 A- 2,339 10% 118 BBB 2,246 5% Rothschild S.A.

336 297 BCV Switzerland 234 A+ 3,323 7% 176 A- 2,435 7%

337 n/a Nomos-Bank Russia 234 A+ n/a n/a n/a n/a n/a n/a

338 343 FIBA Israel 231 A- 1,512 15% 141 BBB 511 28%

339 360 Sydbank Denmark 230 A 1,923 12% 132 BBB 744 18%

340 396 Van Lanschot Netherlands 228 A- 2,083 11% 114 BB 1,986 6%

341 315 BOK Financial United States 227 A+ 3,063 7% 164 BBB 3,083 5%

342 n/a Bank BPH Poland 226 A 712 32% n/a n/a n/a n/a

343 288 Vontobel Switzerland 225 A+ 2,069 11% 184 A+ 1,349 14%

344 n/a Knight United States 224 AA- 1,643 14% n/a n/a n/a n/a

345 n/a Allahabad Bank India 224 A 1,164 19% n/a n/a n/a n/a

346 440 Guoco Group Hong Kong 223 A 3,762 6% 96 BBB 2,008 5%

347 n/a ADIB Uae 222 A 1,701 13% n/a n/a n/a n/a

348 309 Sarasin Switzerland 221 A 2,463 9% 168 A- 1,213 14%

Banco do Nordeste 349 455 Brazil 220 A- 1,909 12% 92 BBB 1,346 7% do Brasil

350 383 Bank Danamon Indonesia 220 A- 4,156 5% 121 BB 1,089 11%

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 100 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

351 n/a MF Global Bermuda 218 A- 900 24% n/a n/a n/a n/a

352 365 Joyo Bank Japan 217 A+ 3,530 6% 129 BBB 3,997 3%

353 407 AMG United States 217 AA- 2,703 8% 108 BBB 1,149 9%

TT Hellenic 354 409 Greece 217 A 2,080 10% 107 A- 968 11% Postbank

355 454 Indian Bank India 215 A 1,460 15% 92 BB 1,049 9%

People's United 356 316 United States 215 AA- 5,682 4% 163 A 6,552 2% Bank

357 299 Associated Bank United States 215 A+ 1,553 14% 174 BBB 2,685 6%

358 352 Jefferies United States 215 A+ 4,623 5% 135 A- 2,209 6%

359 428 Tullett Prebon United Kingdom 215 A- 1,368 16% 100 B 573 17%

MARFIN 360 339 Greece 214 A 1,221 18% 144 BB 793 18% EGNATIA BANK

361 319 Frost Bank United States 212 AA- 2,866 7% 160 A 3,202 5%

362 345 Synovus United States 212 A+ 1,187 18% 140 A 2,573 5%

Vozrozhdenie 363 497 Russia 212 A- 831 25% 77 BB 285 27% Bank

364 314 Commerce Bank United States 206 A 3,092 7% 164 A 3,227 5%

The Hachijuni 365 481 Japan 206 A 3,132 7% 83 BBB 2,652 3% Bank

366 256 Close Brothers United Kingdom 206 A+ 1,681 12% 236 A- 1,083 22%

367 398 Bank Millennium Poland 205 A- 1,493 14% 113 BB 1,070 11%

368 487 Kazkommertsbank Kazakhstan 205 A+ 3,005 7% 81 BB 2,163 4%

369 348 BankMuscat Oman 202 A+ 2,566 8% 138 BBB 2,398 6%

370 265 Mizuho Japan 202 A+ 4,872 4% 218 BBB 5,580 4%

Banesco Banco 371 406 Venezuela 201 A- 591 34% 109 BBB 359 30% Universal

372 n/a PBZ Croatia 200 A 2,460 8% n/a n/a n/a n/a

373 n/a Central Finance Japan 199 A n/a n/a n/a n/a n/a n/a

374 219 Emporiki Bank Greece 198 BBB 2,139 9% 296 BBB 1,194 25%

375 368 Bank of Kyoto Japan 198 A+ 3,293 6% 128 BBB 3,552 4%

*Market Capitalisation 2010 - 27 October 2009

376 457 BGC Partners United States 195 A 1,144 17% 91 B 731 12%

377 n/a RMB South Africa 194 A- 2,668 7% n/a n/a n/a n/a

Bank of the 378 446 Philippine Philippines 193 AA- 3,305 6% 94 BB 2,792 3% Islands

379 205 Acom Japan 192 A- 2,062 9% 337 A- 6,305 5%

380 421 DenizBank Turkey 192 A 3,639 5% 102 A 2,113 5%

381 n/a Coutts United Kingdom 192 AA- 565 34% n/a n/a n/a n/a

382 320 Gunma Bank Japan 192 A 2,502 8% 159 BB 2,919 5%

383 390 Hong Leong Bank Malaysia 191 A+ 3,614 5% 117 BBB 2,185 5%

Halyk Savings 384 400 Kazakhstan 191 A+ 2,290 8% 113 B 998 11% Bank Kazakhstan

385 n/a Findomestic Banca Italy 190 A+ n/a n/a n/a n/a n/a n/a

386 239 Banco Popular Puerto Rico 190 A- 1,516 13% 257 AA- 1,735 15%

387 n/a Hong Leong Group Malaysia 190 A 1,967 10% n/a n/a n/a n/a

388 n/a Burgan Bank Kuwait 186 A+ 1,440 13% n/a n/a n/a n/a

389 493 Banif SGPS Portugal 185 A- 949 20% 78 B 519 15%

390 300 Basler Kantonalbank Switzerland 183 A 3,618 5% 174 AA 2,858 6%

391 328 First Citizens Bank United States 182 A+ 1,576 12% 153 A 1,489 10%

Commercial Bank 392 485 Egypt 182 AA 2,997 6% 81 B 1,522 5% International

393 n/a Corporation Bank India 180 A 1,340 13% n/a n/a n/a n/a

394 n/a CIMB Niaga Indonesia 179 A 1,757 10% n/a n/a n/a n/a

395 403 Commercialbank Qatar 177 A 4,430 4% 110 A- 3,313 3%

396 n/a Friesland Bank Netherlands 177 A- n/a n/a n/a n/a n/a n/a

Banco De Oro 397 480 Philippines 176 A+ 1,737 10% 83 BB 1,084 8% Unibank

398 n/a BM&Fbovespa Brazil 176 A+ 13,685 1% n/a n/a n/a n/a

Compagnie 399 413 Financière Switzerland 174 BB 816 21% 104 BB 314 33% Tradition

400 n/a NAB Switzerland 173 A 1,553 11% n/a n/a n/a n/a

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 102 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

401 458 Kredyt Bank Poland 173 A- 1,211 14% 91 BBB 999 9%

402 290 Banco Pastor Spain 172 A- 1,947 9% 182 B 1,821 10%

403 n/a First Niagra United States 171 A 2,402 7% n/a n/a n/a n/a 404 363 GFI United States 170n/aBBB 745 23% 130 BBB 421 31% Ural-Siberian 405 468 Russia 169 BB 1,537 11% 86 CCC 613 14% Bank

406 n/a Doha Bank Qatar 169 A 2,424 7% n/a n/a n/a n/a

407 n/a BMCE Bank Morocco 168 A 5,061 3% n/a n/a n/a n/a

Rural Electrification 408 n/a India 165 A 3,565 5% n/a n/a n/a n/a Corp

409 393 Bank Of Ningbo China 164 A+ 4,799 3% 115 A- 2,581 4%

410 443 Webster Bank United States 161 A 844 19% 96 BB 754 13%

411 n/a VÚB Banka Slovakia 161 A 1,153 14% n/a n/a n/a n/a

BBVA Banko 412 n/a Peru 161 A- 5,053 3% n/a n/a n/a n/a Continental

413 258 HSH Nordbank Germany 160 A n/a n/a 232 BBB n/a n/a

414 n/a BLOM Bank Lebanon 160 AA- 1,763 9% n/a n/a n/a n/a

Sapporo Hokuyo 415 401 Japan 160 A 1,314 12% 112 BBB 1,502 7% Holdings St Galler 416 410 Kantonalbank Switzerland 160 A 2,583 6% 106 A 1,832 6% Reg. City National 417 377 United States 159 A+ 2,046 8% 123 A- 2,018 6% Bank

418 427 ABC Bahrain 159 A+ 1,380 12% 101 A- n/a n/a

419 n/a Redecard Brazil 159 A+ 10,194 2% n/a n/a n/a n/a

420 n/a Aberdeen United Kingdom 159 A 2,227 7% n/a n/a n/a n/a

Banco Di 421 429 Italy 158 A- 788 20% 100 BB 637 16% Sardegna Rsp

422 n/a Bank Audi Lebanon 158 A 2,568 6% n/a n/a n/a n/a

The Hiroshima 423 445 Japan 157 A- 2,364 7% 95 B 2,155 4% Bank

424 n/a Bank Asya Turkey 157 A+ 1,938 8% n/a n/a n/a n/a

425 152 LBBW Germany 155 A n/a n/a 616 A- n/a n/a

*Market Capitalisation 2010 - 27 October 2009

427 358 AmeriCredit United States 154 A+ 2,350 7% 133 BB 802 17%

First Bank of 428 317 Nigeria 153 A 2,739 6% 162 BBB 4,932 3% Nigeria Taiwan 429 441 Cooperative Taiwan 153 A+ 3,455 4% 96 B 2,508 4% Bank Nishi-Nippon 430 374 Japan 151 A 1,901 8% 125 BB 1,711 7% City Bank

431 367 YMFG Japan 151 A+ 2,523 6% 129 BB 2,437 5%

432 n/a Aareal Bank Germany 150 A 952 16% n/a n/a n/a n/a

Nanjing City 433 n/a China 149 A+ 4,809 3% n/a n/a n/a n/a Commercial Bank Banca Popolare 434 380 Italy 148 A- 3,010 5% 121 BBB 2,661 5% di Sondrio

435 350 WestLB Germany 147 A n/a n/a 137 A n/a n/a

436 291 Clydesdale Bank Australia 147 A 2,354 6% 182 A- 939 19%

437 n/a Saudi Hollandi Bank Saudi Arabia 147 A 2,999 5% n/a n/a n/a n/a

Credito 438 439 Italy 146 A 2,353 6% 96 BBB 1,988 5% Bergamasco

439 385 BancorpSouth United States 146 A+ 2,001 7% 119 A- 1,828 7%

440 201 Chuo Mitsui Japan 145 A+ 6,631 2% 360 A- 4,075 9%

441 430 CI Financial Corp Canada 144 A 5,445 3% 100 BB 2,998 3%

442 n/a UnionBanCal Corp Japan 144 AA- 1,149 13% n/a n/a n/a n/a

443 349 Union National Bank Uae 144 A+ 2,196 7% 138 A 1,639 8%

Mitsubishi UFJ 444 n/a Japan 143 A- 2,752 5% n/a n/a n/a n/a Lease & Finance

445 296 Yorkshire Bank Australia 141 A- 2,354 6% 176 A- 939 19%

446 462 The Iyo Bank Japan 141 BBB 3,041 5% 90 BB 3,456 3%

Oriental Bank Of 447 467 India 139 A- 1,305 11% 86 BB 719 12% Commerce

448 459 Bank ZENIT Russia 139 A n/a n/a 91 BBB n/a n/a

449 n/a Ashmore United Kingdom 139 A+ 3,329 4% n/a n/a n/a n/a

450 466 ITG United States 139 AA- 1,062 13% 87 A- 989 9%

*Market Capitalisation 2010 - 27 October 2009

© Brand Finance plc 2010 © Brand Finance plc 2010 104 Brand Brand Brand Brand Market Brand Brand Value / Rank Rank Value / Market Brand Domicile Value Rating Cap Value Rating Market 2010 2009 Market Cap Cap 2009 2010 2010 2010* 2009 2009 Cap 2009 (%) (%)

451 n/a Hellenic Bank Cyprus 138 A 647 21% n/a n/a n/a n/a

452 417 MLP Germany 138 A- 1,206 11% 103 BBB 1,343 8%

453 486 Syndicate Bank India 138 A 1,006 14% 81 B 554 15%

Banco de 454 388 Spain 138 A- 4,211 3% 118 A- 4,690 3% Valencia SpareBank 1 455 n/a Norway 136 A 793 17% n/a n/a n/a n/a SR-Bank

456 437 Nelnet United States 136 AA- 727 19% 97 BBB 653 15%

457 384 Bank of Hawaii United States 135 A+ 2,152 6% 120 A+ 2,122 6%

Commercial 458 419 Uae 135 A+ 1,898 7% 103 A 1,864 6% Bank of Dubai

459 n/a Tatra Banka Slovakia 135 A- 895 15% n/a n/a n/a n/a

460 n/a EON Bank Malaysia 134 A- 1,166 11% n/a n/a n/a n/a

461 n/a Andhra Bank India 134 A 1,161 12% n/a n/a n/a n/a

462 329 Suruga Bank Japan 132 A+ 2,312 6% 152 BBB 2,592 6%

Henderson 463 483 United Kingdom 132 A 1,833 7% 82 BBB 614 13% Group

464 n/a CR Veneto Italy 132 A 1,112 12% n/a n/a n/a n/a

465 n/a RAKBANK Uae 132 A+ 1,179 11% n/a n/a n/a n/a

466 432 The Shiga Bank Japan 131 A+ 1,626 8% 99 BB 1,463 7%

467 490 ABG Bahrain 130 A+ 1,042 13% 81 A- 1,751 5%

468 392 Laurentian Bank Canada 130 A- 876 15% 115 A- 662 17%

469 474 OMC Card Japan 130 BB 961 13% 85 B 405 21%

Banca 470 n/a Romania 129 A 657 20% n/a n/a n/a n/a Transilvania Central Bank if 471 n/a India 127 A- 1,115 11% n/a n/a n/a n/a India

472 488 SAIB Saudi Arabia 127 BBB 2,448 5% 81 A 1,883 4%

473 444 Metrobank Philippines 127 A 1,571 8% 95 A- 898 11%

Astoria Financial 474 395 United States 126 A+ 1,002 13% 114 BBB 1,691 7% Corp

475 n/a BTA Bank Kazakhstan 125 BBB 547 23% n/a n/a n/a n/a

*Market Capitalisation 2010 - 27 October 2009

476 190 Och-Ziff United States 124 A 4,312 3% 392 BBB 1,781 22%

477 405 The 77 Bank Japan 123 A+ 2,176 6% 109 BB 1,795 6%

Valley National 478 469 United States 123 A+ 1,953 6% 86 A- 2,583 3% Bancorp Chang Hwa 479 411 Commercial Taiwan 123 A+ 2,888 4% 105 BBB 1,736 6% Bank

480 375 Orient Corp Japan 123 A 498 25% 125 BBB 532 24%

481 n/a BKME Kuwait 122 A 1,691 7% n/a n/a n/a n/a

482 n/a SFCG Japan 121 A n/a n/a n/a n/a n/a n/a

483 n/a Hitachi Capital Japan 121 A 1,514 8% n/a n/a n/a n/a

Dollar Financial 484 n/a United States 121 A- 474 25% n/a n/a n/a n/a Corp

485 n/a Umpqua Bank United States 120 AA 836 14% n/a n/a n/a n/a

Bendigo and 486 306 Australia 120 A+ 3,120 4% 170 A- 1,996 8% Adelaide Bank

487 194 Promise Japan 120 A- 862 14% 376 BB 2,798 13%

488 n/a Banco Galicia Argentina 119 AA- 501 24% n/a n/a n/a n/a

489 416 Wing Hang Bank Hong Kong 118 A 2,958 4% 103 BBB 1,300 8%

490 n/a BicBanco Brazil 118 A 1,700 7% n/a n/a n/a n/a

491 n/a VIEL & Cie France 117 A- 363 32% n/a n/a n/a n/a

Banco de 492 499 Spain 117 A- n/a n/a 77 BBB 949 8% Andalucia Trustmark 493 475 United States 116 A+ 1,081 11% 84 A- 1,141 7% National Bank

494 456 The Daishi Bank Japan 116 A+ 1,314 9% 92 BB 1,527 6%

495 425 DundeeWealth Canada 116 A- 1,715 7% 101 A- 512 20%

496 464 CA Aquitaine France 116 A 2,433 5% 88 A- 685 13%

The Chugoku 497 424 Japan 115 A 3,042 4% 101 BBB 3,194 3% Bank

498 495 Oberbank Austria 115 A 1,695 7% 78 A- 1,706 5%

BANCA 499 n/a Italy 115 A- 499 23% n/a n/a n/a n/a ITALEASE

500 n/a ABK Kuwait 114 A 2,059 6% n/a n/a n/a n/a

*Market Capitalisation 2010 - 27 October 2009